The country’s foreign exchange reserves rose by $37.7 billion and stood at a record $341.4 billion at the end of March 2015, according to the latest monthly bulletin of the Reserve Bank of India. The rise in reserves would have been $61.4 billion, if calculated on the balance of payments (BoP) basis.
The RBI has carried out the valuation based on dollar, taking into account fluctuations in value of other currencies. This had resulted in a loss of $24 billion. The change in foreign currency reserves in 2013-14 was $15.5 billion on BoP basis. The rise was only $12.2 billion after taking into account the valuation effect. The record foreign exchange reserves in 2014-15 were also due to FDI inflow and investments in equity and bond markets.
