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
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