“Gross foreign exchange reserves surged by 35.3 per cent to Rs 368.10 billion in midMarch from a level of Rs 272.15 billion in mid-July 2011,” according to the central bank’s data. “Such reserves had declined by 4.2 per cent to Rs 257.48 billion in the same period of the last fiscal year.” Out of the total reserves, central bank’s reserves increased by 43.1 per cent to Rs 305.02 billion from a level of Rs 213.10 billion in the first month of current fiscal year, it said, adding that in US dollar terms, the reserves of convertible foreign exchange increased by 14.5 per cent to $3.56 billion in mid-March from the level of mid-July 2011.

 

“Such reserves had increased by only 5.7 per cent during the same period of the previous year.” Similarly, net foreign assets — after adjusting foreign exchange valuation gain-loss increased by Rs 79.90 billion (37 per cent) against a decline of Rs 11.29 billion (5.3 per cent) in the same period of the last fiscal year.

 

The current account surplus on account of improvement in workers’ remittance and service income as well as improvement in financial account were the factors responsible for the favourable Balance of Payments (BoP) leading to such an increase in net foreign assets of the monetary sector, the central bank said, adding that BoP has posted a record Rs 79.90 billion in first eight months of current fiscal.

 

The remittance sent by migrant workers has also recorded an increase of 34.7 per cent to Rs 217.77 billion as compared to a growth of 12.3 percent in the same period of the last fiscal year.

 

Likewise, during the first eight months of 2011-12, the reserves in terms of inconvertible foreign exchange, increased by 64.6 per cent to IRs 52.88 billion against a decrease by 37.6 per cent during the same period of last fiscal year.

“In US dollar terms, remittance inflow increased by 24.2 per cent to $2.77 billion as compared to a growth of 15.2 per cent in the same period of the last fiscal year,” it said, adding that foreign direct investment of Rs 6.02 billion was also recorded under the financial account.