Arab News

India’s Forex Reserves Cross $200 Billion

14 April 2007
 

By Rajesh Mahapatra

New Delhi, Associated Press: India's rupee currency rose to its highest level in eight years against the US dollar yesterday after central bank data showed foreign exchange reserves crossed $200 billion (147.8 billion euros) for the first time.

The news helped the rupee climb further to an eight-year high of 42.51 per dollar.

Reserves have risen rapidly in recent months on the back of growing foreign investment, higher remittances and increased overseas borrowing by Indian companies. India added $1.14 billion (847 million euros) to its foreign exchange reserves during the week ended April 6, bringing the total to a record $200.32 billion (148.82 billion euros), the central bank said yesterday.

India is the fifth Asian country – after China, Taiwan, Japan and South Korea – to have reserves topping $200 billion (147.8 billion euros), of which $46 billion (34 billion euros) came in the past year.

Although a stronger rupee dents the competitiveness of Indian exports, the central bank is hesitant to intervene and buy dollars because that could fuel inflation as more rupees come into circulation.

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