The total foreign exchange reserves (comprising foreign
currency assets, gold, special drawing rights and reserve tranche position in
IMF) was US$ 304.8 billion at end-March 2011, US$ 294.4 billion at end-March
2012 and US$ 292.0 billion at end-March 2013. In the current fiscal, reserves
stood at US$ 295.2 billion as on April 12, 2013.
The level of foreign exchange reserves is largely the outcome
of the RBI’s intervention in the foreign exchange market to smoothen exchange
rate volatility, valuation changes due to movement of the US dollar against
other major international currencies and inflow of aid receipts.
The rising import bill is usually financed adequately by the export earnings,
invisible receipts and capital flows.
This was stated by Minister of State for Finance, Shri Namo Narain Meena, in
written reply to a question in the Lok Sabha today.