RBI update: WMA declines from 130171 cr to 60605 cr..

Following from my last article, WMA for the week ended 10-Jan-2020 declined to Rs 60605 cr. It was at a record 130171 cr on the week ended 3-Jan-2020.

WMA on asset side is usually linked with reverse repo (included in Deposits – Others) on liabilities side. This is because as WMA increases, liquidity in the system increases leading to rise in reverse repo. And the opposite happens in case of reversal.

Thus, as WMA has declined on the Assets side, Reverse Repo on the Liabilities side has declined by 93197 cr.  For tracking all the changes exactly, we need a detailed balance sheet which we do not get in WSS.

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