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INDIA BUSINESS WORLD - October 1st October 15th 2008
FOREX RESERVES FALL BY $8 B
FOREIGN exchange reserves fell steeply by $7.9 billion during the week ended October 3, 2008, because the RBI sold dollars to prevent the rupee from weakening further. The money supply growth reined in marginally during the latest fortnight, with credit and deposits recording a lower annual growth over the previous fortnight’s levels.
According to the latest figures released by RBI in its weekly statistical supplement (WSS), total forex reserves, including gold and special drawing rights (SDR), dipped $7.9 billion to touch $283.9 billion. While foreign currency assets fell $7.7 billion, the value of gold in reserves lost $127 million to $40,205 million. Though the value of SDR in reserves did not change during the week, reserves with IMF declined $10 million.
Deposits with commercial banks grew Rs 36,761 crore during the fortnight ended September 26, 2008 to touch Rs 34,42,138 crore, taking the annual growth to 19.8%. While loans to commercial banks touched Rs 25,42,467 crore, up Rs 51,219 crore over the previous fortnight’s levels, an annual growth of 24.8%. At the current levels, both credit and deposits recorded a lower annual growth over the previous fortnight’s levels.
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