India's management of foreign exchange reserves has "generally been in accordance with International Monetary Fund guidelines and comparable to global best practices", according to an IMF document.

In line with global developments, in the recent period, the country's reserve management operations have become more transparent, IMF said in its accompanying document published as a supplement to "Guidelines for Foreign Exchange Reserve Management".   

The emphasis is on efficient management of reserves and India's policies like efficient use of technology, sound management of market risks, sophisticated risk management techniques and determination of optimal currency composition are comparable with international best practices, it said.

As on May 17, 2003, India's foreign exchange reserves reached a record level of $79.225 billion.

IMF said, "Maintaining a capacity to intervene in markets to support the exchange rate regime or to contain excessive volatility in foreign exchange market as also to provide confidence to markets and reduce their vulnerability to financial crises" are some of India's important reserve management objectives.

Reserve Bank of India in a release said the document also says, "India intervenes in market to even out lumpy demand or supply in thin markets and to prevent estabilising speculation while facilitating forex transaction at market rates for all permissible purposes. Liquidity is, therefore, an important consideration is reserve management."

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What do you think about the story? Read what others have to say: Number of User Comments: 6 Sub: we are proud of U RBI ! ! ! This is another live example of Indian talent comming off to world standard.Keep it up all RBI officials.You have done it.You are making us all ... Posted by satish p dingre Sub: Foreign exchange reserves $80 billion reserves is a real great achievement. I am watching this steady progess for last couple of years and full credit goes to sound ... Posted by Sachin Prabhudesai Sub: Well Done Mr. Bimal Jalan deserves apat on his back. Financial management is one thing thats going to drive economies in the 21st century. Well done. keep ... Posted by Business Grad Sub: Well Done !! The Reserve Bank of India's forex management over the last few years has been looked upon as a model by many other central banks across ... Posted by Ganesh Rao Sub: Hats Off to U R.B.I. Officials!!!!! Its great to have a reserve for our country of above USD 80 bn. You are managing the economy in great way. We are looking ... Posted by SURAJIT DAS