Rise in value of non-dollar assets boosts forex kitty by $2.4 billion

MUMBAI: Foreign exchange reserves rose $2.4 billion to $263.6 billion during the week endedJune 12, partly due to an increase in the value of assets held in non-dollar currencies, following the dollar weakening against these currencies

Almost 40% of RBI’s forex reserves are believed to be in non-dollar assets, including the sterling pound, yen, euro and the yuan. However, the exact composition is not known, as no central bank makes public the currency composition of its reserves. Forex reserves would have also gone up, as RBI has been buying dollars to prevent the rupee from appreciating too sharply.

RBI data show the annual money supply growth now at 20.2% is lower than previous year’s 21.78%. As per the updated money supply figures, total stock of money comprising cash currency and deposits amounted to Rs 49,39,696 crore as on June 5, up Rs 8,483 crore (0.2%) over previous fortnight’s levels. While currency with the public and demand deposits dipped Rs 173 crore and Rs 20,795 crore, respectively, term deposits rose Rs 26,885 crore.