The Reserve Bank of India deployed $35,024 million in international securities for the fiscal ended March 31, 2004, higher than $26,929 million invested in FY-03 even as pre-payment of high-cost foreign currency loans of the central government was pegged at $3.7 billion in 2003-04.

Out of total foreign exchange reserves of $1,07,448 million in FY-04 ($71,890 million in FY03), deposits with other central banks and Bank for International Settlements, and foreign commercial banks accounted for $45,877 million ($33,463 million) and $26,547 million ($11,498 million), respectively, RBI said in its report on foreign exchange reserves released on Monday.

International securities include the US treasury bills and "AAA" rated bonds.

RBI said the foreign exchange reserves are invested in multi-currency, multi-market portfolios as per the existing norms, which are similar to international practices.

The ratio of volatile capital flows to reserves declined from 146.6 per cent as at end-March 1991 to 36.0 per cent as at end-March 2004, the central bank added.

The significant increase in forex reserves enabled prepayment of certain high-cost foreign currency loans of the government from the Asian Development Bank and the World Bank amounting to $3.03 billion in February 2003.

During 2003-04, prepayment of certain high cost loans to IBRD and ADB amounting to $2.6 billion was carried out by the government. Additionally, prepayment of bilateral loans amounting to $1.1 million was made taking total quantum of prepayments to $3.7 billion in FY-04.