India’s Forex Reserves Drop as Pakistan’s Reserves Jump

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India’s Forex Reserves Drop as Pakistan’s Reserves JumpIndia’s foreign exchange reserves dropped for the second consecutive week after earlier declining $1.33 billion in the week through 12 September.

The nation’s forex reserves fell $1.62 billion to US$315.698 billion in the week through Sept. 12. This now means that forex reserves have declined nearly $3 billion after the rupee was weighed by the surging dollar. The dollar has jumped recently on speculation the Federal Reserve may phase out its monetary easing policy, making U.S. assets attractive and thus draw capital away from emerging markets.

Foreign currency assets dropped US$1.60 billion in the week to US$288.765 billion.

Forex reserves have jumped US$11.475 billion in the 2015 financial year so far, compared with a gain of US$40.347 billion in the 2014 calendar year, reported the Business Standard.

Gold reserves remained unchanged at $20.933 billion over the period through Sept. 12. The nation’s Special Drawing Rights (SDRs) and its reserve position at the International Monetary Fund dropped slightly to US$4.333 billion and US$1.667 billion in the week ending Sept. 12.

Meanwhile, Pakistan’s forex reserves surged to $13.525 billion in the week through Sept. 12, up from $13.414 billion a week earlier, reported the central bank.

Foreign exchange reserves held by the central bank jumped to $8.795 billion compared with 8.693 billion a week earlier. The forex reserves held by banks also grew from $4.730 billion in the week ended Sept. 12 from $4.721 billion the prior week.

Remittances from Pakistani diaspora jumped 12.61 percent to about $2.978 billion in the July to August period, the first two months of the 2014/15 financial year, compared with $2.44 billion a year earlier. Pakistan’s financial year begins on July all the way to June the following year. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.

To contact the reporter of this story; Yashu Gola at yashu@forexminute.com