Non-residents' claims dip by $1.2 bn in Q3 to $356.5 bn: RBI

Non-residents' claims dip by $1.2 bn in Q3 to $356.5 bn: RBI

The net claims of non-residents on the country declined by a marginal USD 1.2 billion to USD 356.5 billion at of the end of the December quarter, the Reserve Bank said today.

This was on the back of a USD 2-billion increase in the value of residents' financial assets abroad compared to the USD 0.8-billion rise in the value of foreign-owned assets in the country, it said in the quarterly data on International Investment Position (IIP).

RBI said the IIP data are important as they help understand the external sustainability and vulnerability of the country, and are useful in analysing the economic structure.

Financial assets held by residents abroad rose by USD 2 billion to USD 490.5 billion on the back of a USD 6.9- billion increase in reserve assets, while other investments abroad like trade credit, loans, currency and deposits, dragged the number down by USD 5.3 billion, it said.

Foreign-owned assets in the country increased by USD 0.8 billion during the third quarter to USD 847 billion on an USD 1.4 billion increase in other investment in India, while the stock of portfolio investment declined by USD 0.6 billion, the apex bank said.

The liabilities were affected by the exchange rate movements of the rupee versus other currencies, the RBI said, adding there was an equity inflow of USD 7.1 billion during the December 2014 quarter on a net basis.

The outstanding equity liabilities declined to USD 382.4 billion from USD 385.9 billion in the September 2014 quarter, it said.

The ratio of the country's international financial assets to international financial liabilities stood at 57.9 per cent in the reporting period, marginally higher than the 57.7 per cent three months earlier.

In the composition of external financial assets, RBI said reserve assets continued to have the dominant share at 65.4 per cent which was followed by overseas direct investment at 26.4 per cent.

On the liabilities front, the major components were direct investment (29.8%), portfolio investment (25%), loans (21.1%) and currency and deposits (13%).
The share of non-debt liabilities declined marginally to 45.2 per cent from 45.6 per cent at end-September 2014.

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