Mecklai Graph: Abatement of Indian forex reserves
Mecklai graph of the day: India‘s foreign exchange reserves have been in a situation of vex, with latest reports from the PM Economic Panel targeting an accretion to the reserves of up to $4 billion for FY2013.
August 17, 2012 / 20:29 IST
Mecklai graph of the day: India’s foreign exchange reserves have been in a situation of vex, with latest reports from the PM Economic Panel targeting an accretion to the reserves of up to $4 billion for FY2013. The latest figures for the reserves as on 10th August 2012 are at $288.65 billion, close to the lowest figures for this calendar year.
India's foreign currency reserves fell to about seven months of import cover at the end of March from eight and half months at the end of September 2011, the Reserve Bank of India said in a report released on Thursday. The estimate for import cover assumes an extreme case of no export earnings. The reserves were seen at as high as $320.39 billion in October 2011 and have routinely fallen since. One of the major causes for this is the constant intervention activities conducted by the RBI and also the effect of revaluation.This morning at the PM Economic Panel talk former RBI Governor C. Rangarajan gave various figures for FY13 estimates. They see the economy growing at 6.7%, with enough capital flows to service current account gap. The CAD is seen at 3.6% of GDP or $67.1 billion and Trade Deficit at $181.1 billion. Whether these tasks are cut out in fashion and mentioned deliverables achieved is filled with leeriness.The below graph charts the foreign exchange reserves for India for last 12 months.
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