RBI's forex swap facility draws over $136 billion; more than $127 billion mobilised via FCNR (B) deposits
The Reserve Bank of India's special forex swap facility has successfully mobilized over $136 billion to stabilize the rupee. These inflows, primarily through FCNR (B) deposits, were introduced to counter capital flight and high oil prices.
Why it matters
The success of this facility is critical for India's macroeconomic stability and the strengthening of the national currency against global market pressures.
The foreign exchange inflows — via via Foreign Currency Non-Resident (Bank) FCNR (B) Deposits, Overseas Foreign Currency Borrowings (OFCBs) and External Commercial Borrowings (ECBs) — under Reserve Bank of India’s (RBI) swap facility has crossed $136 billion, surpassing all projections.
This is expected to provide a major relief to the Indian rupee by swelling India’s foreign exchange reserves.
A total of $1,36,377 million has been mobilised, as per data released by the RBI. This includes $1,27,226 million through FCNR (B) deposits, $5,260 million through OFCBS and $3,891 million through ECB.
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