Banks mobilized more than $20.7 billion in foreign exchange inflows under a special swap scheme introduced by the Reserve Bank of India, pushing total inflows past the $20 billion mark, according to central bank data.
The scheme was designed to encourage banks to bring in dollar funding through swap arrangements with the RBI, part of the central bank’s broader effort to manage liquidity and support the rupee amid global market volatility. The inflows mark one of the larger mobilizations under a targeted swap facility in recent years.
The RBI has used similar swap mechanisms in the past to shore up foreign exchange reserves during periods of currency pressure, and the latest figures suggest strong participation from the banking sector in the current round.
The scheme adds to a set of tools the RBI has used in recent months to manage rupee volatility, giving banks an incentive to bring offshore dollar holdings onshore during periods of currency pressure.
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Sources:
https://newsonair.gov.in/category/business/