SMC Capitals Jagannadham Thunuguntla has come out with a report on "BRIC : their forex reserves and respective exposure into US treasury bonds". The research firm said of the BRIC (Brazil, Russia, India and China) countries, India has the least percentage (%) exposure of its total forex reserves into US Treasury Bonds as of September 2009.

1. India's exposure to US bonds least among BRIC
nations: SMC
Published on Fri, Nov 20, 2009 at 17:32 | Updated at Fri, Nov 20, 2009 at 17:42 | Source : Moneycontrol.com
SMC Capitals has come out with a report on "BRIC : their forex reserves and respective exposure into US
treasury bonds". The research firm said of the BRIC (Brazil, Russia, India and China) countries, India has
the least percentage (%) exposure of its total forex reserves into US Treasury Bonds as of September
2009.
"Of the BRIC (Brazil, Russia, India and China) countries, India has the least % exposure of its total forex
reserves into US Treasury Bonds as of September 2009. The data relating to the value of US Treasury
Bonds held, is as per the data released by Department of Treasury of United States on 17th November
2009. As of September 2009, India represents just 12.81% of its forex reserves into US treasury bonds.
This is significantly lower in comparison to the May 2009 level of similar ratio of just 14.79%. This
reduction may be due to the fact that India wants to rechannellize their forex reserves more into non-
dollar assets. The recent acquisition of 200 tonnes of Gold by India is also strengthening this view. With
this less exposure to US Treasury Bonds means that, India is least vulnerable to US dollar depreciation in
comparison to its BRIC peers, with least exposure to US treasury bonds as % of its forex reserves."
The report also says, "Just to put the things in perspective, as of September 2009, the similar ratio of
exposure to US treasury bonds as % of its forex reserves, in the case of Brazil is 64.63%, Russia is
29.46% and China is 35.15%." (See the table in attached report)
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To read the full report click on the attachment.........
Attachments : US Treasury.pdf