The Reserve Bank of India has raised its investments
in sovereign bonds even as its foreign exchange reserves
continued to raise, the RBI''s half-yearly report on
forex reserves shows.
invested $19 billion in overseas bonds, more than half
of the $34 billion increase in its foreign exchange
reserves for the six months ended March 2007.
currency reserves stood at $192 billion as of March
31, 2007, the close of financial year 2006-07. The RBI
also held gold worth $6.7 billion.
the total, $53 billion were invested in sovereign bonds,
$92 billion with other central banks, the BIS and IMF,
while $47 billion were deposited with foreign commercial
percentage of forex reserves invested in sovereign bonds
rose to 27.6 per cent from 21.6 per cent six months
with other central banks, the Bank for International
Settlements (BIS) and the International Monetary Fund
(IMF) rose by $16 billion, while deposits with foreign
commercial banks declined by $1 billion.
have grown 20 per cent in 2006-07 financial year and
by over 12 per cent since then to a record $215 billion
in early July.
foreign exchange reserves are the fifth-largest in Asia
while analysts say the large forex inflows reflect the
central bank''s aim to cap the strength of the rupee.
direct investment into the country rose to $17.7 billion
in 2006-07 from $7.7 billion a year earlier, RBI said
in the report.
economy, which recorded a growth of 9.4 per cent in
2006-07, continued to attracted foreign investors, increasing
demand for the rupee and pushing the currency to nine-year
highs against the dollar.