Latest figures suggest India’s foreign exchange reserves to be at $316.2 billion. This figure has taken me by surprise, considering the total debt outstanding of India at somewhere near $135 billion (im not sure of the figures - please check them).
According to the RBI (Reserve Bank of India), foreign reserves have increased almost $111.2 billion in the past year, which can be attributed to high FDI flow, investments in India, mergers by Indian companies, the Vodafone deal and also deliberate buying of US dollars by Indian Government to keep rupee currency stable and interest rates stable too.
The RBI has also signaled that the increase has something to do with the diminishing value of dollar too.
Tuesday, June 24, 2008
Forex is the coolest thng 2 do
The general forex market is fascinating to analyze- 3 trillion dollars a day is being traded daily with all major banks and financial institutions trading and watching every second. Then there is the smaller part- the retail forex trader, a phenomenon which is becoming more and more popular these days. I find this aspect of the market really interesting. Who is trading in the retail market? It seems that its not the bankers or financial advisers but the average “Joe Shmoe” and the Nigerians. That graph shows us some very interesting things about forex traders …people are becoming more aware of it and many of them are not located in the U.S.
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