FOREIGN exchange reserves remained almost flat during the week ended March 5 as they rose only by $74 million to touch $278.4 billion. This was largely on account of revaluation of nondollar assets.
According to the latest data released by RBI, foreign currency assets rose $81 million during the week. Special drawing rights — the reserve currency with IMF, dipped $6 million and $1 million, respectively.
The dip in foreign currency assets during the week is largely on account of the dollar making strong gains against the euro, resulting in revaluation of non-dollar assets such as yen, euro and the sterling pound, expressed in dollars, pointed out a treasury official at a public sector bank.
Banks have continued to park funds in mutual funds. The total stock of money comprising cash, currencies and deposits rose by Rs 58,145 crore during the fortnight to touch Rs 54,16,963 crore as on February 26. At current levels, the annual YoY growth works out to 16.4% compared with 19.9% in the year-ago period.