India's exposure to US bonds least among BRIC nations: SMC

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SMC Capitals has come out with a report on "BRIC : their forex reserves and respective exposure into US treasury bonds". The research firm said of the BRIC (Brazil, Russia, India and China) countries, India has the least percentage (%) exposure of its total forex reserves into US Treasury Bonds as of September 2009.

"Of the BRIC (Brazil, Russia, India and China) countries, India has the least % exposure of its total forex reserves into US Treasury Bonds as of September 2009. The data relating to the value of US Treasury Bonds held, is as per the data released by Department of Treasury of United States on 17th November 2009. As of September 2009, India represents just 12.81% of its forex reserves into US treasury bonds. This is significantly lower in comparison to the May 2009 level of similar ratio of just 14.79%. This reduction may be due to the fact that India wants to rechannellize their forex reserves more into non-dollar assets. The recent acquisition of 200 tonnes of Gold by India is also strengthening this view. With this less exposure to US Treasury Bonds means that, India is least vulnerable to US dollar depreciation in comparison to its BRIC peers, with least exposure to US treasury bonds as % of its forex reserves."

The report also says, "Just to put the things in perspective, as of September 2009, the similar ratio of exposure to US treasury bonds as % of its forex reserves, in the case of Brazil is 64.63%, Russia is 29.46% and China is 35.15%." (See the table in attached report)

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