RBI holds over 500 tonnes of gold

The foreign exchange reserves stood at $360.2 billion as at end-March 2016

GN Bureau | January 16, 2017


#Gold   #Reserve Bank of India   #RBI  


The Reserve Bank holds 557.77 tonnes of gold; of which, 265.49 tonnes are held overseas in safe custody with the Bank of England and the Bank for International Settlements (BIS). Gold as a share of the total foreign exchange reserves in value terms ($) stood at about 5.75 percent as at end-September, 2016, said an RBI report.

Reserve Bank of India’s Half Yearly Report on Management of Foreign Exchange Reserves April-September 2016 said that the net IIP as at end-September 2016 was negative at $367.6 billion, implying that our external liabilities are more than external assets. The net IIP as at end-September 2015 and end- March 2016 was $ (-) 357.0 billion and $ (-) 361.2 billion respectively.

India’s International Investment Position (IIP) is a summary record of the stock of country’s external financial assets and liabilities.

The net forward assets (receivables) of the Reserve Bank in domestic foreign exchange market stood at $ 4,890 million as at the end of September 2016.

The foreign exchange reserves stood at $ 360.2 billion as at end-March 2016. During the half year under review, reserves increased to $ 363.0 billion as at end-April 2016, which declined to $ 361.6 billion as at end-May 2016. Subsequent months witnessed an increase in the reserves, which stood at $ 363.5 billion as at end-June 2016, $ 366.5 billion as at end-July 2016, $ 366.8 billion as at end-August 2016 and $ 372.0 billion as at end of September 2016.

Although both US dollar and Euro are intervention currencies and the Foreign Currency Assets (FCA) are maintained in major currencies, the foreign exchange reserves are denominated and expressed in US dollar only. Movements in the FCA occur mainly on account of purchases and sales of foreign exchange by the RBI, income arising out of the deployment of the foreign exchange reserves, external aid receipts of the central government and changes on account of revaluation of the assets.

The foreign currency assets comprise multi-currency assets that are held in multi-asset portfolios as per the existing norms, which are similar to the best international practices followed in this regard. As at end-September 2016 out of the total foreign currency assets of $ 346.7 billion, $ 229.0 billion was invested in securities, $ 95.7 billion was deposited with other central banks, the BIS and the International Monetary Fund (IMF) and remaining $ 22.0 billion comprised deposits with overseas branches of commercial banks.

The report said that in tune with the global trend, close attention is paid to strengthen the operational risk control arrangements. Key operational procedures are documented. Internally, there is total separation of the front office and the back office functions and the internal control systems ensure several checks at the stages of deal capture, deal processing and settlement. The deal processing and settlement system, including generation of payment instructions, is also subject to internal control guidelines based on the principle of one-point data entry. There is a system of concurrent audit for monitoring compliance in respect of all the internal control guidelines. Further, reconciliation of accounts is done regularly. In addition to internal annual inspection, the accounts are audited by external statutory auditors. There is a comprehensive reporting mechanism covering significant areas of activity/ operations relating to reserve management. These are provided to the senior management periodically, viz., on daily, weekly, monthly, quarterly, half-yearly and yearly intervals, depending on the type and sensitivity of information.

Read: Half Yearly Report on Management of Foreign Exchange Reserves April-September 2016
 

Comments

 

Other News

Title Insurance: new product for old issues

Real estate is among the priciest investments around. More so for the common man who has to live with the burden of monthly EMIs. Yet, it is an art to discover the real owner of any property. Government and revenue records, which are easily accessible to the public, are not properly maintained. Individual

Aadhaar linkage with electoral roll on cards

The election commission of India (ECI) has been working on a series of electoral reforms, and the agenda includes linking Aadhaar with the electoral roll, considering paid news and false affidavit as electoral offence/corrupt practice, better monitoring the role of print media and social media intermediari

Save Panje wetland, give it Ramsar status: environmentalists

To protect the fast depleting wetlands against being used as landfill and for development activities in Mumbai metropolitan region (MMR), environmentalists have asked the centre to declare the 289-hectare Panje wetlands in Uran tehsil of Raigarh district as a ‘Ramsar site’ and preserve its ecol

All you wanted to know about Mumbai’s coastal road

Mumbai is building a coastal road to cut through traffic snarls and make life easier for commuters. The ambitious project, part of the city’s Development Plan (DP) 2035, is the second major initiative after the Bandra-Worli sea link, and should become a reality in 2023. Here are the key facts

Delhi elections: accounting for intangibles away from banal nationalism and hyper nationalism

The party that came into existence on the intangible timeworn issue of corruption, transparency and increasing public investment through public savings is going on winning elections in Delhi with huge margins, consistently rowing the boat between doldrums and high tides. Somewhere between the doldr

How Divyang-friendly and inclusive is Mumbai? Experts discuss

Mumbai, the second largest city in the country, is not very inclusive when it comes to the easy access to the disabled, but it is learning and is in the process of making the life of Divyangs easier. Also, it aims to rehabilitate all slums in five years. Stakeholders came together to discuss



Archives

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter