China's forex reserves by $2.8 billion over 7 times that of India

China's central bank said on Saturday that its foreign exchange reserves rose 16 percent year-on-year to $1.9537 trillion by the end Money of March. On the other hand, India's forex reserves stood at $255 billion. China's reserves, already the world's largest, increased by $7.7 billion in the first quarter - $146.2 billion less than the same period last year, AP reported quoting the People's Bank of China's Web site. In case of India, inflows by foreign institutional investors (FIIs) and a weak dollar have pushed up forex reserves by $2.8 billion. Easing credit growth has also resulted in a lower growth in money supply. This is because a dip in loans slows down the ‘multiplier effect’ , which occurs when money lent by a bank is spent and comes back to the banking system in the form of new deposits creating fresh money. Analysts believe China holds up to 70 percent of its foreign reserves in US dollar-denominated assets, including Treasury securities. According to figures released by the Reserve Bank of India foreign currency assets rose $3 billion, the value of gold in reserves dipped $169 million. The level of special drawing rights - currency with the International Monetary Fund (IMF) - remained unchanged during the week. China's reserves have ballooned as the central bank buys up dollars generated from its huge trade and influx of foreign investment.

Source :economictimes.indiatimes.com/Chinas-forex-reserves-over-9-times-that-of-India/articleshow/4388439.cms