Published • loading... • Updated
RBI Reports $136.38 Billion Forex Inflows Under Special Swap Facility as of August 31
The facility was launched to curb forex outflows and support the rupee, while the FCNR(B) window closed early after unexpected inflows.
- The Reserve Bank of India advanced the closure of its FCNR deposits scheme to August 31, 2026, to manage its $137 billion open short forward dollar position following unexpected inflows.
- Surpassing all projections, foreign exchange inflows via FCNR, OFCBs, and ECBs under the RBI's swap facility reached $136 billion since its June 8 introduction to counter forex outflows.
- Shashi Dhar, Chief General Manager of Treasury & Global Markets at Bank of Baroda, said banks may "bolster their asset-side books and reduce their dependence on wholesale deposits in the immediate term" using these inflows.
- Despite the swap facility, the rupee has depreciated by 7.22% against the USD, trading at around 96, prompting economists to express concerns about structural weakness.
- Garima Kapoor, Deputy Head of Research and Economist at Elara Capital, stated the rupee lacks "a pathway for structural appreciation" without India embedding itself in global value chains.
Insights by Ground AI
23 Articles
23 Articles
The Reserve Bank of India's strategy to raise dollars from non-resident Indians (NRIs) has delivered better-than-expected results. More than $100 billion in foreign currency had flowed into India through FCNR(B) deposits as of August 31. Amid this record inflow, the RBI closed the window for the special swap facility nearly a month ahead of schedule.
Record FCNR (B) inflows as banks mobilise $127 bln
Banks mobilized over $127 billion from FCNR(B) deposits by August 31. Total dollar inflows reached $136.37 billion through special schemes. The FCNR(B) scheme alone accounted for over 93% of these inflows. This influx helped swell foreign exchange reserves to a record high. The swap scheme for ECBs and OFCBs continues until December 2026.
·India
Read Full ArticleCoverage Details
Total News Sources23
Leaning Left3Leaning Right6Center2Last UpdatedBias Distribution55% Right
Bias Distribution
- 55% of the sources lean Right
55% Right
L 27%
C 18%
R 55%
Factuality
To view factuality data please Upgrade to Premium
