Rajeev Chandrasekhar's official website - Member of Parliament

 

GOVERNMENT OF INDIA
Ministry of Finance
DEPARTMENT OF ECONOMIC AFFAIRS

 RAJYA SABHA
UNSTARRED QUESTION N0.227
TO BE ANSWERED ON AUGUST 9, 2012 I SHRAVANA 18, 1934 (SAKA)
Falling Value of Rupee

 

227. SHRI RAJEEV CHANDRASEKHAR: 

Will the Minister of FINANCE be pleased to state:

 (a)   whether the consistently falling value of the rupee against the dollar has resulted in foreign exchange reserves of the nation slipping at alarming levels:

(b)   if so the details thereof; and

(c)    The remedial measures that Government has taken or proposes to take in this regard? 

 

ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI NAMO NARAIN MEENA)

(a) To (c) The country's foreign exchange reserves have declined to US$ 288.8 billion at end July

2012 from US$ 292.8 billion at end January 2012.

The change in foreign currency assets occurs mainly on account of buying and selling of foreign exchange by the Reserve Bank of India (RBI) in the foreign exchange market in India. Besides, income arising out of the deployment of foreign exchange reserves, external aid receipt of the Central Government, and movements of the US dollar against other currencies in which foreign currency assets is held also impact the level of reserves. The decline in foreign exchange reserves between January-July 2012 was mainly due to sale of foreign currency assets by the RBI. The foreign exchange reserves of US$ 288.8 at end July, 2012, however, are at adequate level in terms of import coverage.