Foreign Exchange

Measures to curb dollar demand have strengthened the rupee, but raise costs for importers and leave the durability of the recovery uncertain

RBI says banks must park a 20% forex risk reserve in CRR accounts over and above mandatory balances, as the new rules raise hedging costs and push up forward premiums

Repatriation by foreign investors accounted for 44 per cent of gross FDI, while foreign exchange equal to another 31 per cent moved out as Indian companies invested abroad

On October 1, the RBI updated a Master Direction consolidating various reports/ forms required to be submitted under Fema

Gold reserves, by contrast, declined by $2.59 billion to $113.81 billion during the week as gold prices fell 0.56 per cent to $4,429 an ounce

India must now choose among currency appreciation, inflation, bank losses, indirect public exposure and an expensive sterilisation programme

While the Reserve Bank of India's special swap facility shields banks from FX risk on the deposits' principal amounts, interest payments need to be managed by lenders independently

Besides the uncertainty in West Asia, India must also be prepared for shifts in global financial conditions

India's forex reserves jumped USD 12.422 billion to a new all-time high of USD 729.328 billion during the week ended August 21, the RBI said on Friday. In the previous reporting week, the kitty had increased USD 9.905 billion to USD 716.907 billion. The previous all-time high had stood at USD 728.494 billion was attained during the week ended February 27 this year, right before the onset of the Middle East conflict. Geopolitical tensions led to several weeks of a drop as the rupee and the RBI had to intervene in the forex market through dollar sales. For the week ended August 21, foreign currency assets, a major component of the reserves, increased USD 9.482 billion to USD 591.333 billion, the central bank's data showed. Expressed in dollar terms, foreign currency assets include the effects of appreciation or depreciation of non-US units, such as the euro, pound, and yen, held in foreign exchange reserves. It can be recalled that the central bank and the government had last month

Local currencies will play an increasing role in cross-border trade and payments as settlement can lower transaction costs, currency mismatches and improve efficiency

The path to Indian economic success begins with a full reckoning of the costs of exchange-rate management

Asian central banks are seeking new ways to support weak currencies and preserve forex reserves as West Asia tensions, oil risks and high US rates weigh on markets

RBI's trade monitoring framework should move from universal transaction matching to risk-based scrutiny, balancing foreign exchange controls with ease of doing business

A card with zero cross-currency conversion charge will allow you to load US dollars and then spend in any currency without incurring further charges

Against the ​yen, the U.S. dollar was down 0.1% at 163.645 yen, on course for its sharpest daily decline ​since July 10

The government responded to a grave foreign exchange crisis by progressively liberalising, rather than perpetuating restrictions on access to foreign exchange and imports

A stable economy does not require a permanently stable exchange rate

India's forex reserves jumped USD 964 million to USD 675.157 billion in the week ended July 10, the Reserve Bank said on Friday. In the previous reporting week, the overall kitty had jumped by USD 7.26 billion to USD 674.193 billion. The kitty had expanded to an all-time high of USD 728.494 billion during the week ended February 27 this year before the onset of the West Asia conflict, which led to several weeks of drop as the rupee came under pressure and the RBI had to intervene in the forex market through dollar sales. For the week ended July 10, foreign currency assets, a major component of the reserves, increased by USD 930 million to USD 546.508 billion, the central bank's data showed. Expressed in dollar terms, the foreign currency assets include effects of appreciation or depreciation of non-US units, such as the euro, pound, and yen, held in the foreign exchange reserves. Value of gold reserves increased by USD 24 million to USD 105.223 billion during the week, the RBI ...

Foreign banks' India exposure limits may shape FCNR(B) inflows as Indian lenders tweak deposit rates and tenors to attract NRI funds under the RBI scheme

ARAI has dropped its two-rate forex proposal for FY27 DVA calculations under the auto PLI scheme after automakers flagged audit, compliance and paperwork concerns