Date:15/07/2006 URL: http://www.thehindubusinessline.com/2006/07/15/stories/2006071502940800.htm

Back Foreign currency asset deposits

Our Bureau

Mumbai, July 14

A major portion of the country's foreign currency assets was deposited with other central banks, Bank of International Standards and the International Monetary Fund, according to the six-monthly report on country's forex reserves released by the Reserve Bank of India today.

As per the report, the country's foreign currency assets stood at $145.1 billion as on March 31. Out of this, $35.2 billion was invested in securities; $65.4 billion was deposited with other central banks, BIS and IMF. The balance $44.5 billion was in the form of deposits with foreign commercial banks, the report said.

The reserves as on March 31 would cover the imports requirements for 11.6 months. However, as on July 14, the reserves stood at $163.26 billion. The report also said that the ratio of short-term debt to foreign exchange reserves increased to 7 per cent from 5.3 per cent as on March end 2005. The ratio of volatile capital flows, which includes cumulative portfolio inflows and short-term debt, to reserves increased to 43.2 per cent from 36.6 per cent last year.