India Projects Forex Reserve Growth

Those who make a living tracking and
betting on the foreign exchange reserves of Central Banks officially have a new player to
keep tabs on: India.  Nearly 17 years ago, India's reserves dipped
below $1 Billion, and government ministers began sounding the alarm
bells. In comparison, fiscal 2007 witnessed a rise of $47 Billion in India's reserves, bringing the total to $280
Billion.  The government is projecting an
even greater increase in 2008, estimated at $100 Billion.  Now, the
challenge is what to do with all of the reserves; investors will
be tracking developments in this regard because of the implications
for the currencies of which the reserves are denominated in.  The
Dollar and Euro are currently jockeying for position; while the
Dollar is way ahead, the Euro is quickly closing in.

Read More: India expects to add $100 bn
to forex reserve in FY'08