India's foreign exchange reserves snapped out of a month-long gaining streak and fell sharply by $1.589 billion to $87.738 billion during the week ended October 3, from its record high of $89.327 billion a week ago due to the redemption of the Resurgent India Bonds on October 1.

The Reserve Bank of India weekly statistics report showed that the foreign currency assets, dipped by $1.788 billion to $83.815 billion during the week from $85.603 billion as the State Bank of India had reportedly sourced the parts of the required amount for the $5.5 billion RIBs redemption from the central bank, forex dealers said.

The RIBs, which were issued in October 1998 by SBI for five year term with a total subscription of around $4.23 billion, matured on October one and its redemption stood around $5.5 billion.

However, the surge in gold reserve which rose up by $199 million to $3.919 billion and sharp gains in non-US currencies like the Euro and Yen during the week, partially cushioned the impact of the RIBs redemption, dealers said.

The special drawing rights remained unchanged at $4 million during the week.

India's reserve tranche position with the International Monetary Fund, moved up further by $11 million to $1.203 billion during the week.

The RTP, which could change from time to time due to India's transactions under the financial transaction plan with the IMF as well as changes in SDR exchange rates, however, is not included in the forex reserve.

The forex reserves has gained by $12.310 billion in the current fiscal year, while it was higher by $17.293 billion in the calendar year till October 3, though it slipped from a high of $13.899 billion and $18.882 billion, respectively, from a week back.

The aggregate bank deposits of the scheduled commercial banks moved up by Rs 22,896 crore (Rs 228.96 billion) during the fortnight ended September 26 to Rs 13,91,398 crore from the previous fortnight, while the total bank credit rose by Rs 13,847 crore (Rs 138.47 billion) to Rs 7,45,8476 crore (Rs 74,584.76 billion).

UNI