Forex reserves fall by 1.8% on bond repayment

India’s foreign exchange reserves (forex) fell about 1.8 per cent in the week ended October 3, 2003, snapping eight weeks of rises, following redemption of foreign currency bonds during the week, Central Bank data showed on Saturday.

Reserves stood at $87.74 billion on October 3, down from a record high of $89.33 billion a week earlier, the Reserve Bank of India (RBI) said. The fall had been expected as about $5.2 billion of Resurgent Indian Bonds (RIB) fell due for payment on October 1.

These foreign currency bonds, which were targeted at expatriate Indians, were floated by the SBI in 1998 to beef up foreign exchange reserves.