Indian forex reserves approaching $200B

Both ET & FT reported on the continuing rise in India’s foreign exchange reserves over the past week. Here’s what the RBI stated in its latest weekly supplement:

RBI Weekly Supplement 2 March 2007

The weekly increase of $4.2B is relatively large - supposedly driven by capital inflows. Note that the RBI hasn’t increased its gold allocations proportionately. Also, the rupee weakened last week, despite the rapid rise in forex reserves.

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