RBI net forex buys hit a record $43 billion in August, balances it with swaps
The Reserve Bank of India recorded a net purchase of $43.26 billion in August's foreign exchange market. This was done to manage significant dollar inflows from the FCNR(B) scheme and overseas borrowings. Despite the net purchase, foreign exchange reserves did not increase due to large forex sell/buy swaps. By August 31, measures attracted over $127 billion,...
Key Takeaways
- The Reserve Bank of India recorded a net purchase of $43.26 billion in August's foreign exchange market.
- This was done to manage significant dollar inflows from the FCNR(B) scheme and overseas borrowings.
- Despite the net purchase, foreign exchange reserves did not increase due to large forex sell/buy swaps.
The Reserve Bank of India recorded a net purchase of $43.26 billion in August's foreign exchange market. This was done to manage significant dollar inflows from the FCNR(B) scheme and overseas borrowings. Despite the net purchase, foreign exchange reserves did not increase due to large forex sell/buy swaps. By August 31, measures attracted over $127 billion, aiding the RBI's operations.
Original Publisher Attribution
This summary was curated from Economic Times.