Forex reserves cross $300 b

Mumbai, March 7 The total foreign exchange reserves crossed the $300 billion mark for the first time, with an accretion for the third week in a row.

For the week ended February 29, the reserves increased by $6.625 billion to touch $301.235 billion, according to the Reserve Bank of India.

In the previous week, the foreign currency assets had increased by $1.754 billion to touch $294.610 billion.

Mr R.V. S. Sridhar, Vice-President, Treasury, Axis Bank, said the increase would include the value of the pound and euro, which gained against the dollar. The price of gold had also gone up during the same week.

As per the RBI’s weekly statistical supplement, foreign currency assets increased by $6.261 billion to touch $291.250 billion. Foreign currency assets, as expressed in dollars, include the effect of appreciation or depreciation in non-US currencies (euro, sterling and yen) held in reserves.

The total FII inflows into the equity market for the week under consideration were Rs 1,322.6 crore. Though the rupee was flat against the dollar, the euro had touched a record high of $1.5238 during the week, which also may be reflected in the value of the forex reserves.

According to a senior official from a public sector bank, the inflows could have increased not only because of dollar purchases made by the RBI but also because of inflows into equity market, inward remittances and foreign currency coming in for industrial and infrastructure projects. After remaining unchanged for three weeks, the gold reserves moved up by $359 million to touch $9.558 billion. SDRs remained unchanged and the reserve position in the IMF increased by $5 million to touch $427 million.