News: Indian forex reserves rise $1.789 b

(BL 31/03/2007) Mumbai - The country's foreign exchange reserves surged by $1.789 billion to touch $197.746 billion in the week ended March 23, 2007. The reserves have increased by over $3.3 billion in two consecutive weeks. During the week ended March 16, the reserves had touched $1.547 billion to $ 195.957 billion. According to the RBI's Weekly Statistical Supplement, foreign currency assets increased by $1.789 billion to $190.392 billion. Treasury officials said strong FII inflows would have resulted in the accretion to the reserves. "The RBI was conspicuous by its absence last week. So, the increase could have come only with strong dollar inflows," said a senior treasury official. According to data from SEBI, FII inflows were around $325.5 million. Foreign currency assets, as expressed in dollars, include the effect of appreciation or depreciation in non-US currencies (euro, sterling and yen) held in reserves. Gold reserves remained unchanged at $6.883 billion while SDRs were at $2 million. India's reserve position in the IMF remained the same at $469 million.