Brief Overview:
Two US Dollar–INR forex swap facilities operationalised, aiming at attracting FX inflows, reducing hedging costs & supporting ₹ stability. This framework seems to echo the 2013 FCNR(B) swap window introduced, where RBI provided concessional swap support to banks to rapidly bolster forex reserves and stabilise the ₹.
Technical Details:
Key Highlights
Takeaways:
This framework is expected to give impetus to offshore borrowing by certain types of entities and strengthen banks’ push for FCNR(B) deposits.
For further details, please see:
Swap Facility for FCNR (B) Deposits
Swap Facility for External Commercial Borrowings and Overseas Foreign Currency Borrowings
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