Last Updated :
08 March 2010 at 17:15 IST
Value of India gold reserves dips by $212 million
MUMBAI (Commodity Online): India showed the world its might in November 2009 when it bought 200 tonnes of IMF gold and entered the top 10 gold holders’ list. At that time the move was widely hailed by one and all for India’s bold decision to buy gold at a time when the world was reeling under recession.
However, immediately after buying the gold, India’s gold reserves soared and its value also jumped because of a bull run in gold.
But, now then value of India’s gold reserves climbed down because of a fall in gold prices in London Bullion Exchange.
According to the Reserve Bank of India, India’s foreign exchange reserve climbed down by $375 million during the week ended February 26 to touch $278.4 billion. This was partly on account of revaluation of non-dollar assets and partly on account of dip in the value of gold in reserves.
Both foreign currency assets as well as value of gold in reserves dipped $212 million and $136 million, respectively. While SDR (special drawing rights, the reserve currency with IMF) rose $26 million and $7 million, respectively.
With gold prices dipping in the international market in February, the value of gold in reserves, which is revalued every month, depending on the variation at the London Bullion Exchange, also dipped.
Moreover, the impact of variation in gold prices is more significant now after RBI increased its gold holdings, following a purchase of $200 tonnes of gold from IMF in November last year.
The dip in foreign currency assets during the week could be largely due to the dollar making gains against the euro, resulting in revaluation of non-dollar assets such as yen, euro and the sterling pound, expressed in dollars , pointed a treasury official at a public sector bank.
However, foreign exchange reserves had gone up $485 million to $279.199 billion for the week ended February 12.
The reserves have risen after falling for three consecutive weeks. For the week ended February 5, foreign exchange reserves fell by $2.241 billion to $278.714 billion.
Foreign currency assets expressed in the US dollar terms include the effect of appreciation or depreciation of non-US currencies. Foreign currency assets increased by $521 million to $254.696 billion. Gold reserves remained unchanged at $18.056 billion.
MCX CHANADEL 01 January 2020
contract was trading at
Rs 0 . What's your view on it?
After reading this article, people also read:
