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India’s foreign exchange reserves hit record high

Central bank estimates an outflow of $20 billion due to the deposits maturing during that period

Policy Pulse
Publish Date: Jun 11 2016 10:50AM | Updated Date: Jun 11 2016 10:50AM

India’s foreign exchange reserves hit record high

India's foreign exchange reserves set a high record at $363.46 billion for the week, mostly because of central bank taking delivery of its forward-dollar contracts and dollar buying in spot foreign exchange (forex) markets.

 
Dollar 3 billion reserves of RBI increased last week from $360.19 billion a week before, official data showed.
 
As per the report in TOI, RBI had $1.8 billion in forwards maturing for the end of May, which may have led to the increase in reserves.
 
Valuation adjustment for other foreign currencies in the reserves may also have led to the increase, according to the reports.
 
Central bank is widely expected to be looking to shore up its forex reserves to meet expected payments tied to dollar deposits offered by domestic banks to Indians abroad in September 2013 when the country was in need to raise the greenbacks.