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
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