scholarly journals Analysis on Growth of Foreign Exchange Reserves in India Since 1960-61 to 2017-18

2019 ◽  
Vol 8 (2) ◽  
pp. 69-73
Author(s):  
R. Rajanbabu ◽  
A. Srilaka

This paper is primarily concerned with an analysis of the growth and trends in the foreign exchange reserves of India. It is based on secondary data and the data reliable for analysis are collected from handbook of statistics on Indian economy and the website of Reserve Bank of India. The study covers the period of 58 years from 1960-1961 to 2017-18. The collected data have been used for analysis with the help of compound growth rate. The analysis of the data reveals that foreign exchange reserves have significantly changed over the years. All the indicators noticed notable growth rate during the period under review. From the overall analysis showed that India holds adequate level of foreign exchange reserves.

The present situation of Indian economy is worse. The GDP growth rate is 5% which is very low compared to last five years trend. After a record fell down of short-term interest rates of commercial banks (below one percent), the Reserve bank of India has turned to quantitative easing (QE) to hold up economic growth. It is used by the government to amplify the supply of money in the economy. It leads to an increase in lending by commercial banks and spending by customers subsequently. On the other hand, these policies will boomerang greatly on economy and leads to extraordinarily high levels of inflation. If commercial banks fail to afford excess reserves, it may direct to unhinge in the money market. Simply it jeopardizes the entire economic system. To come out from this, Reserve Bank of India injects a fixed quantity of money into the economy by massive and unprecedented purchasing of financial assets from commercial banks and private entities. This leads to an increase in banks reserves. Quantitative easing is not a new word to the economic world; it is most popular from the times of great recession in US economy. There has been an explode of research on QE and its effects. Past studies tremendously agree that QE helps in ease financial conditions and there is no reason to doubt that it supports economic growth. It is not only very powerful in times of financial crisis, but also has a momentous effect in normal times. By and large, this research paper focuses on finding the reasons behind the slowdown of growth rate of Indian economy and provides the likely solutions to come out from the crisis.


2019 ◽  
Vol 8 (3) ◽  
pp. 7555-7558

The present situation of Indian economy is worse. The GDP growth rate is 5% which is very low compared to last five years trend. After a record fell down of short-term interest rates of commercial banks (below one percent), the Reserve bank of India has turned to quantitative easing (QE) to hold up economic growth. It is used by the government to amplify the supply of money in the economy. It leads to an increase in lending by commercial banks and spending by customers subsequently. On the other hand, these policies will boomerang greatly on economy and leads to extraordinarily high levels of inflation. If commercial banks fail to afford excess reserves, it may direct to unhinge in the money market. Simply it jeopardizes the entire economic system. To come out from this, Reserve Bank of India injects a fixed quantity of money into the economy by massive and unprecedented purchasing of financial assets from commercial banks and private entities. This leads to an increase in banks reserves. Quantitative easing is not a new word to the economic world; it is most popular from the times of great recession in US economy. There has been an explode of research on QE and its effects. Past studies tremendously agree that QE helps in ease financial conditions and there is no reason to doubt that it supports economic growth. It is not only very powerful in times of financial crisis, but also has a momentous effect in normal times. By and large, this research paper focuses on finding the reasons behind the slowdown of growth rate of Indian economy and provides the likely solutions to come out from the crisis.


2019 ◽  
Vol 1 (4) ◽  
pp. 37
Author(s):  
Yulizar Fikri ◽  
Ali Anis

This study aims to determine the analysis of the determinants of the composite stock price index in Indonesia. The independent variables in this study are inflation as X1, foreign exchange reserves as X2, exchange rates as X3, and economic growth as X4, and the dependent variable of the composite stock price index as Y. The data used are secondary data in the formof time series data from 2010Q1 until 2019Q2, with data collection techniques, namely documentation from Bank Indonesia publications, the Central Statistics Agency, investing. comsite and library research. The research methods used are: (1) Multiple Linear Regression, (2) Classical Assumption Test (3) coefficient of determination. The results of this study indicate that:(1) inflation does not significantly influence the composite stock price index. (2) foreign exchange reserves have a significant positive effect on the composite stock price index. (3) the rupiah exchange rate has an influence on the composite stock price index and (4) economic growth hasno significant effect on the composite stock price index.


2021 ◽  
Vol 9 (1) ◽  
pp. 1-12
Author(s):  
Nanda Eulia ◽  
Syaparuddin Syaparuddin ◽  
Parmadi Parmadi

This study aims at the implications of the development of foreign exchange reserves, exports, inflation, and the exchange rate of the rupiah and Malaysian ringgit for the period 2000-2017, the implications of the effect of exports, inflation, and the rupiah exchange rate on foreign exchange reserves in Indonesia and the effect of exports, inflation and the value of the rupiah. exchange rate ringgit against Foreign Exchange Reserves in Malaysia. The type of data used in this study is secondary data which is periodic data from 2000 – 2017, hypothesis testing itself using multiple linear regression equations. The analytical tools used are the joint test (F-Test), Partial Regression Coefficient Test (t-test), and Classical Assumption Test. Based on the t-test analysis, it can be seen that exports cannot affect foreign exchange reserves. Meanwhile, inflation has a negative and significant effect on foreign exchange reserves with a coefficient of 0.159% and the exchange rate has a positive and significant effect on foreign exchange reserves with a coefficient of 1.446%. Keywords: Exports, Inflation, Exchange rates, Foreign reserves


2021 ◽  
Vol 108 (september) ◽  
pp. 1-5
Author(s):  
Mohammad Mubashir Kachroo ◽  
◽  
Nageena Nazir ◽  

The study was conducted to find the fluctuation in the prices and arrival of the selected high value agricultural commodities. The study was conducted for the period 2004-2020 by collecting secondary data from CMIE (Centre for Monitoring Indian Economy) database. The major agricultural commodities were selected purposively on the basis of high price fluctuatiion and arrivals in the market. The commodities selected for the study include, castor seed, coriander, jeera, soybean and turmeric. The results of the study showed that there is a positive and significant relationship between growth rate and the prices of selected commodities with Jeera showing the highest growth rate of (9.87%) in arrival followed by turmeric (9.05%) and the lowest in coriander (5.06%) as against the prices where it showed all together with a different scenario with highest in case of coriander (7.55%) followed by soybean (7.24%) and lowest in jeera with (5.69%) respectively. The results of the findings revealed that in all the commodities high seasonal indices were observed from March to June indicating high post-harvest arrivals during these months. In the case of soybean and turmeric, the seasonal index for prices is high in April to September, which reveals that there is a lack of storage facilities and the production during these months is very low. This study suggested improvement in the infrastructure, storage, and postharvest techniques so that the arrivals of these commodities get increased and availability should be throughout the year so that the price fluctuation can be minimized.


Author(s):  
Havid Risyanto ◽  
Mahdoh Mahdoh

ABSTRACT The agricultural sector is the primary sector and plays an important role for the national economy. One of the agricultural sectors is soybeans which is a staple food for the people of Indonesia. This study aims to determine the simultaneous and partial effects of consumption, production and foreign exchange reserves on soybean imports in Indonesia, as well as to analyze the variables that have the most dominant influence on soybean imports in Indonesia in the period 2000-2016. The method used in this study is a quantitative approach research and uses secondary data with time series and the analysis tool used is multiple linear regression analysis with the help of software Eviews 9. The results showed simultaneous consumption, production and reserve variables Foreign exchange has a significant impact on soybean imports in Indonesia for the period 2000-2016. Foreign exchange reserve variables have a positive and significant effect on soybean imports in Indonesia for the period 2000-2016. Keywords : soybean consumption, soybean Production, foreign exchange reserves and soybean import ABSTRAK Sektor pertanian merupakan sektor primer dan memegang peranan penting bagi perekonomian nasional. Salah satu dari sektor pertanian adalah kedelai yang merupakan termasuk makanan pokok bagi masyarakat Indonesia. Penelitian ini bertujuan untuk mengetahui pengaruh secara simultan dan parsial konsumsi, produksi dan cadangan devisa terhadap impor kedelai di Indonesia, serta untuk menganalisis variabel yang berpengaruh paling dominan terhadap impor kedelai di Indonesia pada periode tahun 2000-2016. Metode yang digunakan dalam penelitian ini adalah penelitian dengan pendekatan kuantitatif serta menggunakan data sekunder dengan runtun waktu (time series) dan alat analisis yang digunakan adalah analisis regresi linear berganda dengan bantuan perangkat lunak Eviews 9. Hasil penelitian menunjukan secara simultan variabel konsumsi, produksi dan cadangan devisa berpengaru signifikan terhadap impor kedelai di Indonesia periode tahun 2000-2016. Variabel cadangan devisa berpengaruh positif dan signifikan terhadap impor kedelai di Indonesia periode tahun 2000-2016. Kata Kunci : Konsumsi Kedelai, Produksi Kedelai, Cadangan Devisa dan Impor Kedelai


2019 ◽  
Vol 3 (2) ◽  
pp. 59
Author(s):  
Anas Iswanto Anwar ◽  
Bayu Pamungkas Djamal ◽  
Sri Undai Nurbayani

The aim of this research is to analyze the effect of foreign loans, interest rate, and export for the foreign exchange reserves in Indonesia during 2002-2016. This research used secondary data which tends the time-series published by Bank Indonesia, The Ministry of Trade Republic of Indonesia, Central Agency on Statistics Indonesia in the year of 2002-2016. The result of the regression by using ordinary least squares (OLS) method showed that the foreign loans and export take effect positively to the foreign exchange reserves. It indicates that the increase of foreign loans and export could affect the foreign exchange reserves in Indonesia during 2002-2016. Otherwise, the interest rate could not affect the foreign exchange reserves in Indonesia during 2002-2016.


2020 ◽  
Vol 3 (2) ◽  
pp. 34
Author(s):  
Mustafa Mustafa ◽  
Devi Andriyani

This study aims to analyze the effect of cocoa and rubber export imports on foreign exchange reserves in Indonesia. This study uses secondary data from 2005-2017 obtained from the Central Bureau of Statistics of Indonesia. The data analysis method used multiple linear regression models. The results partially show that cocoa and rubber export impors do not significantly influence the foreign exchange reserves in Indonesia. Simultaneous cocoa and rubber export imports have a positive and significant effect on foreign exchange reserves in Indonesia. The amount of influence is 0,9059 or 90,59% while the rest is influenced by other variables outside the model by 09,41%.


2021 ◽  
Vol 10 (1) ◽  
pp. 10
Author(s):  
Fakhrurrazi Fakhrurrazi ◽  
Hijri Juliansyah

This study aims to determine the relationship between exports, foreign debt payments, and the exchange rates on the foreign exchange reserves of Indonesia in 1988-2019. This study uses secondary data for 31 years and uses the Autoregressive Distributed Lag (ARDL) analysis method to analyze the data. The results of this study indicate that all variables have no relationship between variables, only on the foreign exchange reserves to exports. In short-term testing, the export does not have a significant effect on foreign exchange reserves, and the foreign debt payment and the exchange rate have a significant effect on foreign exchange reserves. However, in the long run, all variables do not have a significant effect on foreign exchange reserves.Keywords:Exports, Foreign Debt Payment, Exchange Rates, Foreign Exchange                    Reserves, ARDL


Accepting deposits and lending loans is the primary function of banks. They lend loans on certain terms and conditions. Some of the granted loans may be continuously, periodically and systematically repaid by the borrowers as per the agreed terms and conditions but may not be repaid in time and there may be time lag in repayment. Sometimes the time lag may become longer and irrecoverable. The loan granted by the bank is asset to the bank as it is receivable amount to bank. If the loan is being systematically repaid by the borrower, it is performing asset, otherwise if it is not being paid regularly and properly it is said to be non performing asset. If payments of interest and/ or principal are in default for more than 90 days period, generally it is considered as non-performing asset. Nonperforming assets are burden to banks. They adversely affect the performance of banks and sometimes increasing non-performing assets may lead to closure of business also. These should be regularly reviewed, monitored, analysed and ultimately controlled for the smooth running of bank. For this a systematic regulatory mechanism must be employed and ensured its perfect execution. In this paper an attempt has been made to make study on Non-Performing assets of banks in various sectors in India by using percentages, Indexed values. The study is completely based on secondary data collected from handbook of statistics of Reserve Bank of India. The collected data is tabulated, analysed and conclusions are drawn.


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