RBI net forex buys hit a record $43 billion in August, balanced with swaps
FROM THE WIRE · ECONOMICTIMES.INDIATIMES.COM
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…
Read at the source ↗MARKET IMPACTNEUTRAL✦ News Impact agent estimateTone: neutralRBI forex operations affect rupee liquidity and exchange rate dynamics, though swaps offset the reserve increase.AI-generated summary
✦ IN BRIEF · AIAI-generated summary
- 01The RBI recorded a net purchase of $43.26 billion in the foreign exchange market in August.
- 02The purchases were made to manage large dollar inflows from the FCNR(B) scheme and overseas borrowings.
- 03Reserves did not rise because of large forex sell/buy swaps.