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India's forex reserves rise by $1.68 bn

Discussion in 'World Economy' started by DaRk KnIght, Jun 5, 2011.

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  1. DaRk KnIght

    DaRk KnIght Lt. Colonel ELITE MEMBER

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    MUMBAI: India's foreign exchange (forex) reserves rose by $1.68 billion to $310.21 billion for the week ended May 27 on the back of a sharp increase in foreign currency assets.

    This is the second consecutive weekly jump in the country's forex reserves kitty. The forex reserves had increased by $1.04 billion during the previous week.

    The foreign currency assets, the biggest component of the forex reserves kitty, increased by $1.67 billion to $278.87 billion during the week under review, according to the weekly statistical supplement of the Reserve Bank of India (RBI).

    The foreign currency assets expressed in US dollar terms include the effect of appreciation or depreciation of non-US currencies such as British pound sterling, euro and Japanese yen held in reserves.

    The value of special drawing rights (SDRs) increased by $6 million to $4.59 billion and reserves with the International Monetary Fund increased by $4 million to $2.96 billion.

    The value of gold reserves remained unchanged at $23.79 billion.

    India's forex reserves rise by $1.68 bn - The Times of India
     
  2. KillBill

    KillBill 2nd Lieutant FULL MEMBER

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    What are the advantages of having a huge foreign reserve?

    With dollar losing its steam fast, is it a good idea to stock the dollars in our kitty? Or should there be a diversification of the same?
     
  3. Skull and Bones

    Skull and Bones Doctor Death Staff Member MODERATOR

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    Investing in Gold and Silver will make sense.
     
  4. Hashu

    Hashu Lieutenant SENIOR MEMBER

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    war...bailouts...laons...and plus all the extra money goes there!
     
  5. uptotrix

    uptotrix Captain SENIOR MEMBER

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    No, please read about Foreign Exchange trading by central banks.
     
  6. Varad

    Varad Lieutenant FULL MEMBER

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    I think it also benefits the credit ratings of a country.
     
  7. StingRay

    StingRay 2nd Lieutant FULL MEMBER

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    I think the Reserve Bank should diversify the reserves by investing in precious metals or else just pay off our loans. It is widely believed that a fall in dollar value is looming with the Chinese pushing for alternate currencies of trade.
     
  8. Varad

    Varad Lieutenant FULL MEMBER

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    We can definitely buys some tonnes of gold. That would be helpful as the price of gold soars up.
     
  9. DaRk KnIght

    DaRk KnIght Lt. Colonel ELITE MEMBER

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    Actually Gold is much better than silver. Silver is more affected by the market than gold. We must have atleast 30%-50% of our reserves in Gold.
     
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