MUMBAI: India's foreign exchange
reserves rose $4.2 bn in the week ended May 8, partly due to investments by foreign portfolio managers (or,
FIIs) and partly on account of revaluation of non-dollar-assets in reserves.
According to the data released by RBI, total foreign exchange reserves, including gold and SDR, rose $4,239 million to touch $255.9 billion. Reserves rose largely on account of the rise in foreign currency assets which went up $4 billion while reserves with the International Monetary Fund (IMF) rose $225 million. The value of gold and SDR (special drawing right — the reserve currency with IMF) remained unchanged during the week.
On the fiscal front the central government’s outstanding under the ways and means advances (WMA) — a facility under which the Centre and states borrow from RBI to bridge temporary revenue mismatches — stood at Rs 30,565 crore as on May 8, reflecting weak government financial position.
The outstanding amount is way above the Rs 20,000-crore limit agreed between the government and RBI for the first half of FY10. While borrowings within the limit take place at the prevailing repo rate, higher borrowings attract a penal interest of 2 percentage points.
No comments:
Post a Comment