Govt transferred SDRs worth $820 mn to RBI in March

The government transferred Special Drawing Rights (SDRs) holdings worth $820 million in March 2014 to the Reserve Bank of India out of SDR account held with the International Monetary Fund (IMF).

RBI, in its half-yearly report on management of foreign exchange reserves on Friday, said it had inked pact with the government on March 20 for transfer of the government's SDR holdings in its SDR account with the IMF to RBI in a phased manner. The first tranche of SDRs equivalent of $820 million was transferred to RBI on March 24, 2014, RBI said. Meanwhile, data from the RBI report showed that India's external sector health indicator showed improvement in six month ended March 2014.

The import cover increased to 7.8 months from 6.6 months at end-September, 2013.

The ratio of short-term debt to the foreign exchange reserves, which was 34.2 per cent at end-September, 2013, declined to 29.3 per cent at end-March, 2014.

The ratio of volatile capital flows (cumulative portfolio inflows plus short-term debt) to the reserves declined at end of March 2014. The ratio stood at 90.4 per cent at end of March 2014 down from 97.2 per cent as at end September, 2013.