India’s Forex reserves rise to lifetime high of $621.5 billion

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In the reporting week, the increase in the forex kitty was due to a rise in foreign currency assets (FCAs), a major component of the overall reserves, as per weekly data by the Reserve Bank of India (RBI).
The country’s foreign exchange reserves increased by $889 million to a lifetime high of $621.464 billion in the week ended August 6, 2021, RBI data showed on Friday.
 
In the previous week ended July 30, 2021, the reserves had surged by $9.427 billion to reach $620.576 billion.

In the reporting week, the increase in the forex kitty was due to a rise in foreign currency assets (FCAs), a major component of the overall reserves, as per weekly data by the Reserve Bank of India (RBI).

FCAs rose by $1.508 billion to $577.732 billion in the reporting week.

Gold reserves were down by $588 million to $37.057 billion in the reporting week, the data showed.

The special drawing rights (SDRs) with the International Monetary Fund (IMF) dipped by $1 million to $1.551 billion.

The country’s reserve position with the IMF also fell by $31 million to $5.125 billion, as per the data.

Source: Economic Times

 

Forex reserves rise to $421.72 bn

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India’s foreign exchange reserves rose by $1.96 billion to $421.72 billion on February 16, compared to the previous week. Foreign currency assets (FCAs), which form a key component of reserves, rose by $1.925 billion from the previous week to $396.572 billion.

India’s foreign exchange reserves rose by $1.96 billion to $421.72 billion on February 16, compared to the previous week.

Foreign currency assets (FCAs), which form a key component of reserves, rose by $1.925 billion from the previous week to $396.572 billion.

FCAs are maintained in major currencies like US dollar, euro, pound sterling and Japanese yen.

Movement in the FCAs occur mainly on account of purchase and sale of foreign exchange by the RBI, income arising out of the deployment of foreign exchange reserves, external aid receipts of the government and revaluation of assets.

Gold reserves remained stable at $21.514 billion.

Special drawing rights (SDR) from the International Monetary Fund rose by $13 million from the previous week to $1.546 billion.

SDR is an international reserve asset created by the IMF and allocated to its members in proportion of their quota at the IMF.

The Reserve Position in the IMF rose by $21.7 million to $2.087 billion.

 

Source: Financial Express

Forex reserves surge by $4.1 bn to a new high of $421 bn

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India’s foreign exchange reserves swelled by USD 4.12 billion to a new high of USD 421.914 billion on a healthy increase in the core currency assets and uptick in the gold stock, the Reserve Bank said today.

 

The total reserves had risen by USD 3 billion to USD 417.89 billion in the previous reporting week.

 

The reserves had crossed the USD 400-billion mark for the first time in the week to September 8, 2017 but have been fluctuating since then.

 

However, there has been a continuous surge since the start of this year for the fifth straight week. In reporting week to February 2, foreign currency assets, a major component of the overall reserves, rose by USD 3.025 billion to USD 396.769 billion, the RBI said.

 

Expressed in US dollar terms, the foreign currency assets include the effect of appreciation or depreciation of the non-US currencies such as the euro, the pound and the yen held in the reserves.

 

The value of gold reserves rose USD 1.092 billion to USD 21.514 billion during the week, the central bank said.

 

The country’s special drawing rights with the International Monetary Fund rose by USD 3.2 million to USD 1.547 billion, while the country’s reserve position with the Fund jumped by USD 4.3 million to USD 2.084 billion during the reporting week, the central bank said.

 

Source: Business Standard

 

Forex reserves rose to $399.533 billion as on November 17

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India’s foreign exchange reserves rose by $240.40 million as on November 17 to $399.533 billion, data from the RBI shows. Foreign currency assets, which form a key component of reserves, rose by $220.40 million from the previous week to $375.096 billion.

India’s foreign exchange reserves rose by $240.40 million as on November 17 to $399.533 billion, data from the RBI shows.

Foreign currency assets, which form a key component of reserves, rose by $220.40 million from the previous week to $375.096 billion.

FCAs are maintained in major currencies like US dollar, euro, pound sterling, Japanese yen etc.

Movement in the FCA occur mainly on account of purchase and sale of foreign exchange by the RBI, income arising out of the deployment of foreign exchange reserves, external aid receipts of the government and revaluation of assets.

Gold reserves remained stable at $20.66 billion.

Special drawing rights (SDR) from the International Monetary Fund rose by $7.9 million from the previous week to $1.497 billion.

SDR is an international reserve asset created by the IMF and allocated to its members in proportion of their quota at the IMF.

The Reserve Position in the IMF rose by $12.1 million to $2.273 billion.

Source: Financial Express

Banks on takeover drive of defaulting companies

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Banks are taking over companies under the strategic debt restructuring (SDR) scheme and forcing defaulters to sell assets.

On November 30, banks announced the conversion of Rs 15,000 crore of Gammon India’s loans into equity. On the same day, they informed Hyderabad-based road developer IVRCL that they were converting Rs 7,500 crore of loans into equity.

On Thursday, Electrosteel Steels said its board of directors would meet on December 8 to take on record an SDR package. The Kolkata-based Electrosteel Steels owes banks Rs  9,500 crore.

Banks have also invoked SDR against Lanco Teesta Hydro Power, VISA Steel, Jyoti Structures, Monnet Ispat and Energy.

The SDR scheme was cleared by the Reserve Bank of India in June. The scheme was introduced because banks felt the corporate debt restructuring (CDR) scheme failed to help them recover their money. The CDR cell had approved restructuring loans worth Rs 4 lakh crore till March this year. Under the SDR scheme, banks convert loans into equity and can change the management of the company.

“Banks are not in a mood to listen to borrowers. That is why we are selling our assets in India and abroad to avoid the SDR scheme,” said the promoter of a large corporate group who did not wish to be named. With SDR as a stick,  banks have also put defaulters on notice that if they are unable repay loans by selling assets then they will do it for them. This has expedited the sale of assets by many debt-laden groups.

Banks on takeover drive of defaulting companies

Essar Steel announced on November 8 it had appointed SBI Caps and ICICI Securities to sell stakes in the company. This was apart from its own plans to sell assets worth Rs 11,200 crore by March 2016.  “The promoters will infuse another Rs 1,500 crore into the company in 2015-16,” Firdose Vandrevala, executive vice-chairman, Essar Steel, had said in a recent interview.

Soon after selling its two telecom circles to Idea Cellular, Videocon Industries said it would sell telecom assets, including spectrum, worth Rs 14,000 crore to bring down its Rs  39,000 crore net debt.

The Anil Ambani-owned Reliance Infrastructure said it would sell its cement assets and 11 road projects to cut its  Rs 25,000 crore debt. On Friday, another Ambani company Reliance Communications announced its plans to sell its telecom tower company to private equity firms, Tillman Global and TPG to reduce its debt.   Hyderabad based GMR and GVK are also taking steps to raise funds. On Friday, GMR announced that it is raising $300 million by way of a foreign currency convertible bond.  Similarly, GVK is planning to get an investor for its airport arm. Most debt-heavy companies have been battered on the stock exchanges as investors fear asset sales will pull down future sales and profits.

Banks have also been aggressive with Vijay Mallya, chairman of the UB Group who defaulted on Rs  7,000 crore of loans taken by Kingfisher Airlines and have declared him as a defaulter.

Source: http://www.business-standard.com/article/finance/with-sdr-teeth-banks-move-to-take-over-defaulting-firms-115120400289_1.html