Monday, March 16, 2015

India's balance of payments recorded surplus for the fifth consecutive quarter

India’s BoP for Oct-Dec 2014 pegged at USD 13 billion surplus, helped by lower current account deficit and higher capital account surplus.

When compared against nominal GDP, the BoP surplus was at 2.6%, current account deficit was at 1.6% and trade deficit was 7.7% of GDP.
              
Current account deficit at USD 8 bn; higher than previous quarter due to higher trade deficit.
Jan-Mar 2015 might see current account surplus at 1.1-1.3% of GDP due to lower oil and gold import bill.

Consequent to the BoP surplus and central bank interventions, India's forex reserves continued to build-up, reaching USD 338 bn for the week ended March 6th, 2015

   
Rupee to remain weak due to USD appreciation and REER over-valuation
        

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