India's RBI FX forward book hits record $136.7 billion on surging overseas deposits
MUMBAI: The Reserve Bank of India’s foreign exchange forward position climbed to an all-time high of $136.7 billion in July, fuelled by a surge in overseas deposits following the central bank’s measures to attract dollar inflows and support the rupee. The July figure marked an increase of about $33 billion from June and comfortably eclipsed the previous high of $106.6 billion hit in May. A key measure was a foreign currency non-resident (FCNR) deposits scheme, which allowed commercial banks to swap dollar proceeds raised from non-resident Indians with the central bank at zero cost. Such deposits accounted for the bulk of the overseas inflows mobilised by banks, making up $65.4 billion of the total $72.8 billion received under the various initiatives through August 21. Through July 31, FCNR(B) deposits had accounted for $36.7 billion of the total $40.8 billion in foreign exchange inflows mobilised under the measures. India’s forex reserves hit record $729 billion on sustained capital inflows RBI builds firepower The dollar inflows are swapped by the banks with the RBI, adding to India’s foreign exchange reserves while creating a corresponding forward liability on the central bank’s
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India's RBI FX forward book hits record $136.7 billion on surging overseas deposits
MUMBAI: The Reserve Bank of India’s foreign exchange forward position climbed to an all-time high of $136.7 billion in July, fuelled by a surge in overseas deposits following the central bank’s measures to attract dollar inflows and support the rupee. The July figure marked an increase of about $33 billion from June and comfortably eclipsed the previous high of $106.6 billion hit in May. A key measure was a foreign currency non-resident (FCNR) deposits scheme, which allowed commercial banks to swap dollar proceeds raised from non-resident Indians with the central bank at zero cost. Such deposits accounted for the bulk of the overseas inflows mobilised by banks, making up $65.4 billion of the total $72.8 billion received under the various initiatives through August 21. Through July 31, FCNR(B) deposits had accounted for $36.7 billion of the total $40.8 billion in foreign exchange inflows mobilised under the measures. India’s forex reserves hit record $729 billion on sustained capital inflows RBI builds firepower The dollar inflows are swapped by the banks with the RBI, adding to India’s foreign exchange reserves while creating a corresponding forward liability on the central bank’s
