Forex reserves drop by USD 1.14 bn

Mumbai, Aug 8 (UNI) India's foreign exchange reserves dropped by USD 1.14 billion to USD 305.47 billion on August one from 306.61 a week earlier, the Reserve Bank of India (RBI) said in its weekly statistical supplement today.

The forex reserves even shrinked by about Rs 10.74 bn in the last three months, which was a record high at USD 316.17 bn in late May this year.

Market analysts say the decline was due to dollars given by the central bank to refiners in exchange for their oil bonds in order to meet their demand after sharp rise in oil prices during the period.

Meanwhile, Foreign Currency Assets reserves declined by USD 1.66 bn to USD 295.21 bn during the week from USD 296.87 bn in the previous week.

The gold reserves rose at USD 9.74 bn from USD 9.21 bn, however, special drawing rights (SDR) reserve remained unchanged at USD 11 million, respectively. While, reseves with International Monetary Fund (IMF) dropped at USD 512 mn from USD 515 mn, RBI stated.

The central bank said foreign currency assets, expressed in dollar terms, included the effect of appreciation or depreciation of other currencies held in its reserves such as the euro, pound sterling and yen.

The foreign exchange reserves include India's Reserve Tranche Position in the IMF, the central bank said.

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