India raises $73 bn in forex inflows at record pace
India has mobilized $73 billion in foreign exchange inflows in less than 11 weeks, surpassing the scale and pace of the RBI’s 2013 FCNR(B) swap scheme, according to the finance ministry. Jefferies now anticipates FCNR(B) inflows to reach $90-100 billion by August 31.
What this means
This rapid accumulation of forex reserves provides the RBI with increased ammunition to manage currency volatility and bolsters investor confidence in the Indian economy. The FCNR(B) scheme, combined with dollar bond issuances, is proving highly effective in attracting capital.
Most affected: Forex Markets & Government Treasury
Key takeaway: Anticipate continued stability in the rupee and potential for further market-based liquidity injections by the RBI.
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