India draws record $127 billion through forex deposits: RBI
The Reserve Bank of India successfully mobilized a record $127 billion through foreign-currency deposits to bolster liquidity and manage exchange-rate volatility. The program, which utilized contributions from non-resident Indians, was closed early after meeting its objectives.
Why it matters
This demonstrates the effectiveness of targeted central bank interventions in stabilizing national economies during periods of financial stress.
India mobilised a record $127.23 billion through foreign-currency deposits under a special central bank programme aimed at strengthening the country’s foreign-exchange liquidity, highlighting the role of the overseas Indian community in supporting the economy during periods of market stress, the Reserve Bank of India said on Wednesday.Foreign Currency Non-Resident (Bank), or FCNR(B), deposits accounted for $127.226 billion in inflows as of August 31, the RBI said.Including overseas foreign-currency borrowings (OFCB) and external commercial borrowings (ECB), total inflows under the measures stood at $136.377 billion.The strong response prompted the RBI to close the FCNR(B) window a month ahead of schedule.
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