Sources of Variation in Foreign Exchange Reserves in India during April-September 2012

Table 1: Sources of Variation in Foreign Exchange Reserves*

(US $ billion)

Items

2011-12

2012-13

April-September

April-September

I.

Current Account Balance

-36.4

-39.0

II.

Capital Account (net) (a to f)

42.1

39.3

a.

Foreign Investment (i+ii)

17.1

18.6

(i) Foreign Direct Investment

15.8

12.8

(ii) Portfolio Investment

1.3

5.8

Of which:

FIIs

0.9

6.2

ADRs/GDRs

0.5

0.2

b.

External Commercial Borrowings

8.4

1.7

c.

Banking Capital

19.7

14.9

of which: NRI Deposits

3.9

9.4

d.

Short-Term Trade Credit

5.9

9.5

 e.

External Assistance

0.6

0.0

f.

Other Items in Capital Account

-9.7

-5.4

III.

Valuation Change

0.9

0.1

Total (I+II+III) @

6.6

0.4

*: Based on old format of BoP
@: Difference, if any, is due to rounding off.
Note: (i) ‘Other items in capital account’ apart from ‘Errors and Omissions’ include SDR allocations, leads and lags in exports, funds held abroad, advances received pending issue of shares under FDI and transactions of capital receipts not included elsewhere.
(ii) Increase in reserves(+) / Decrease in reserves (-).

Table 2: Comparative Position of Variation in Reserves

(US$ billion)

Items

2011-12
April-September

2012-13
April-September

1.

Change in Foreign Exchange Reserves
(Including Valuation Effects)

6.6

0.41

2.

Valuation Effects (Gain (+)/Loss (-))

0.9

0.05

3.

Change in Foreign Exchange Reserves on BoP basis (i.e., Excluding Valuation Effects)

5.7

0.36

4.

Percentage of increase/decline in Reserves
explained by Valuation Gain/Loss

13.7

12.2

Note: Increase in reserves (+)/Decrease in reserves (-).
Difference, if any, is due to rounding off.