Forex

Inflation, rising crude oil oil prices and falling exports are telling on India's foreign-exchange assets. The forex reserves have dropped US$4.97billion to US$300.95 billion.

According to a Reserve Bank of India (RBI) data, the country's forex reserves have been by the most in 2 1/2 years. The reserves declined US$4.97bn, the most since December 2005, to US$310.7bn in the week ended June 13.

Gold reserves were unchanged at US$9.2bn while reserves with the International Monetary Fund fell by US$8mn to US$519mn. India's special drawing rights with the International Monetary Fund remained unchanged at US$11mn.

India's foreign-exchange reserves, including overseas currencies, gold and special drawing rights with the IMF, have increased US$99.7bn in the past year, the bank said.

Money supply in India grew 21.4% in the two weeks ended June 6 from a year earlier, compared with 22.5% in the prior two weeks, according to RBI data. M3, which mainly comprises currency in public circulation, bank deposits and money invested in other saving plans, stood at Rs41 trillion on June 6.

The measure rose at an average rate of 21.7% since the current fiscal year began April 1. That is more than the central bank's target of 16.5% to 17% for the fiscal year ending March.

Indian banks' loans rose by Rs160bn in the two weeks ended June 6, taking outstanding advances to Rs23.8trillion. Loans to industry and consumers increased by Rs211.1bn, while food credit fell by Rs51.1bn during the period.