Selling of dollars by the Reserve Bank of India (RBI) has contributed to decline the Forex reserve of country. Forex reserve is continuously under pressure after the bankruptcy of the US investment bank Lehman Brothers and other major financial institutions of world. It is declined by $5 billion in the week ended November 14 to $246.35 billion.

It is also declined following revaluation of non-dollar assets, sellout by foreign investors and strong demand by importers following failure of leading foreign financial institutions.

The Union Government borrowed Rs 5,264 crore under WMA to meet its demands. States also used marginal portion of fund. The monetary system contains about Rs
4,37,78,47 crore as per the updated money supply figures. Money supply in the system has increased by 29.2 per cent as compared to of 23.9% in the same period last year.

Changes in the value of the US Dollar against the Euro, Yen and other currencies helped to maintain foreign currency assets of country.

The gold reserve of country remained unchanged at $8.38 billion while Special Drawing Rights (SDR) of country with the International Monetary Fund (IMF) declined $6 million to $3.