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WIDENING CURRENT ACCOUNT DEFICIT LEADS TO DIP IN FOREX ACCRETION (India's foreign exchange reserves have declined by $2 billion to $139.2 billion for Apr 2005-Jan 2006).
(From India Business Insight)
According to the Economic Survey presented by the Minister of Finance of the Government of India in Parliament on 27 Feb 2006, India's foreign exchange reserves have declined by $2 billion to $139.2 billion for Apr 2005-Jan 2006. The foreign exchanges reserves have reduced in 2005-2006 after several years of continuous growth.
In Dec 2005, the foreign exchange reserves declined sharply by about $5.6 billion, owing to foreign exchange outgo on account of redemption of India Millennium Deposits.
According to the survey, the main reason for the …
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