Posts Tagged: special drawing rights

 
Going up for the third consecutive week, India’s foreign exchange reserves rose by $ 1.575 billion to a new high of $ 354.288 bilion in the week ended June 12, the Reserve Bank of India (RBI) said here today.
 
The country’s forex reserves had gone up by $ 239.4 million to $ 352.714 billion in the previous week.
 
In its weekly statistical supplement, the central bank said that foreign currency assets, which constitute a major chunk of the forex reserves, had gone up by $ 1.569 billion to $ 329.582 billion during the week.
 
Foreign currency assets expressed in US dollar termsinclude the effect of
appreciation or depreciation of non-US currencies such as the euro, pound and yen held in the reserves.
 
According to the bulletin, the country’s gold reserves remained unchanged at $ 19.340 billion, while its special drawing rights (SDR) went up by $ 4.2 million to $ 4.053 billion.
 
India’s reserve position in the Indian Monetary Fund (IMF) increased by $ 1.4 million to $ 1.313 billion, the bulletin added.
 

Two weeks ago, when considering the biggest question on every gold aficionado’s mind, namely how much longer will China keep its gold holdings in secret, we suggested that the answer may be not much longer. The reason: “China may be preparing to update its disclosed holdings because policy makers are pressing to add the yuan to the International Monetary Fund’s currency basket, known as the Special Drawing Right, which includes the dollar, euro, yen and British pound. The tally may come before the IMF’s meetings on the SDR next month or in October, Nomura Holdings Inc. said in an April 8 report.”

“Next month” is now this month, i.e., May, when the fluid IMF meeting was supposed to take place in which China’s inclusion into the SDR was supposed to be at the very top of the agenda.

Unfortunately, it appears that either China, or the IMF, or both, got cold feet about the long-overdue China gold inventory update. The reason: on April 30, IMF spokesman Gerry Riceheld a press briefing in which the main topic was Greece. It had some very testy exchanges about the Greek Plan B such as the following:  >> Read More

 

After a drop last week, India’s foreign exchange reserves rose by $2.78 billion to $343.20 billion in week ended April 17, 2015, according to RBI.

During the week ended April 17, the foreign currency assets, a major component of forex reserves, jumped $2.727 billion to $318.859 billion.

Gold reserves remained unchanged at $19.038 billion, while Special Drawing Rights (SDRs) and India’s reserve position with the IMF increased marginally by $45.6 million to $4.005 billion and $14.8 million to $1.298 billion, respectively.

In the previous reporting week, the reserves had fallen by $2.593 billion in the week ended April 10, snapping a consecutive three-week rise. The reserves had partly fallen due to valuation changes and partly due to RBI selling dollars during that week. The rupee was under pressure in the previous reporting week due to dollar’s global strength and RBI had to sell dollars to support the Indian currency.

 

As is well known, the last time China did provide an update of its official gold inventory was in early 2009 when it disclosed to the IMF some 1,054.1 tons of gold held at the PBOC headquarters (or elsewhere).  The problem is that this number is now very outdated, and substantially undercuts China’s true gold holdings.

To be sure, there has been extensive speculation on the topic, suggesting China’s current gold may be anywhere between 3,000 and 8,000 tons (or more) but the reality is that until Beijing itself decides to officially reveal the number, speculation will remain just that. And, as we and many others, Bloomberg included, have noted such a revelation will not come in a vacuum, but will be largely a political statement about the preparedness of the Renminbi to replace the US Dollar as the world’s reserve currency.

Back in 2011, a leaked cable (courtesy of Wikileaks) admitted as much: 

“China increases its gold reserves in order to kill two birds with one stone”

 

“The China Radio International sponsored newspaper World News Journal (Shijie Xinwenbao)(04/28): “According to China’s National Foreign Exchanges Administration China ‘s gold reserves have recently increased. Currently, the majority of its gold reserves have been located in the U.S. and European countries. The U.S. and Europe have always suppressed the rising price of gold. They intend to weaken gold’s function as an international reserve currency. They don’t want to see other countries turning to gold reserves instead of the U.S. dollar or Euro. Therefore, suppressing the price of gold is very beneficial for the U.S. in maintaining the U.S. dollar’s role as the international reserve currency. China’s increased gold reserves will thus act as a model and lead other countries towards reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the RMB.

>> Read More

 

The Reserve Bank of India’s (RBI) foreign exchange reservesfell by $471.4 million for the week ended January 2 to $319.24 billion, shows Reserve Bank of India (RBI) data released Friday. Foreign currency assets, a key component of reserves, fell by $863.2 million to $294.54 billion. Gold reserves rose $392.7 million during the week at $19.38 billion. For the week under review, the Special Drawing Rights(SDRs) fell by $0.7 million to $4.19 billion, while India’s reserve position with the International Monetary Fund was down $ 0.2 million to $1.14 billion.

 

The country’s reserves surged by $1.432 billion to $316.311 billion in the week to November 28 due to rise in foreign currency assets, RBI data showed on Friday.

In the previous week, reserves had declined by $672.4 million to $314.878 billion.
     
The foreign currency assets, a major constituent of overall reserves, increased by $1.424 billion to $290.822 billion, RBI said.
     
Foreign currency assets, expressed in dollar terms, include the effect of appreciation and depreciation of non-US currencies such as the euro, pound and yen held in reserves.
     
The country’s gold reserves remained unchanged at $19.738 billion.
     
Special Drawing Rights (SDRs) increased by $6.4 million to $4.229 billion, while the country’s reserve
position with the IMF also rose by $2.5 million to $1.521 billion during the week, the RBI data showed.

 

India’s foreign exchange (forex) reserves fell $672.4 million in the week ended November 21 to $314.87 billion.

Foreign currency assets, which form a bulk of the total reserves, fell $664.3 million during the same period.

Gold reserves remained unchanged at $19.73 million.

Special Drawing Rights (SDRs) and the country’s reserve position in the International Monetary Fund fell by $5.9 million and $2.2 million, respectively.

 

India’s forex reserves rose by $419.4 million to $315.551 billion in the week to November 14, driven by a rise in foreign currency assets.

According to data released by the Reserve Bank today, reserves had dipped by $778.4 million to $315.131 billion in the previous week.

The foreign currency assets, a major constituent of the overall reserves, increased by $422.7 million to $290.062 billion, the central bank said.

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

Despite a spike in gold prices, the country’s gold reserves remained unchanged at $19.738 billion.

The special drawing rights (SDRs) were down by $2.4 million to $4.229 billion, while the country’s reserve position with the IMF declined by $0.9 million to $1.521 billion during the week, the RBI data showed.

 

forex29India’s foreign exchange (forex) reserves rose by $1.73 billion in the week ended October 31 to touch $315.91 billion. The country’s foreign currency assets, which form a bulk of the forex reserves, were up $2.03 billion at $290.36 billion in the reporting week.

Gold reserves fell $275 million to $19.73 billion.

Special Drawing Rights and the country’s reserve position in the IMF fell by $19.5 million and $7 million, respectively.

 

The International Monetary Fund has been forced to change the calculation of its most important interest rate after aggressive monetary easing around the world threatened to turn it negative.

Late on Friday, the IMF said it is introducing a floor of 0.05 per cent for the interest rate on Special Drawing Rights, its own form of international currency

The IMF’s move shows how global financial conditions are now easier than they have ever been, more than five years after the end of the Great Recession, leading to the lowest interest rates in its sixty-eight year history.

Rate cuts, asset purchases and forward guidance by central banks around the world continue to disrupt financial markets, forcing participants to adapt in new ways.

“In view of the prevailing interest rates today, the SDR interest rate for the next weekly period starting Monday, October 27, will be established at the floor of 0.05 per cent,” announced the IMF’s executive board. >> Read More

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Team ASR,
Baroda, India.