Forex reserves swell $3.2 bilion

Another interesting article about forex reserves.

"Foreign exchange reserves rose by $3.16 billion in the week ending January 18, 2008 taking the total reserves to a record $284.98 billion. Money market dealers said that the rise in the forex reserves was largely on account of subscription to the IPO of Reliance Energy that closed on January 18.

The public offering is expected to have drawn in large scale funds from foreign institutional investors. During the same week, the BSE’s benchmark index, Sensex, had dipped about 1,000 points to close at 19,700 with most FII selling shares.

The foreign currency assets stood at $276.13 billion while the reserves with IMF was down by $1 million to $433 million, according to the data released by the Reserve Bank of India in its Weekly Statistical report. In the two weeks ended January 18, forex reserves rose by $8.3 billion. For the second consecutive week, the government’s deposits with the Reserve Bank rose."

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