Foreign Exchange

ARAI drops two-rate foreign exchange proposal after industry pushback

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

Dollar and the diaspora: Old courtship, new script in forex strategy

NRI money can steady a wobble but it's not a substitute for durable capital inflows. We need structural changes in the bond and equity markets

Currency questions: Higher costs of incentives for NRIs must be debated

RBI's push to attract FCNR deposits may ease external pressures, but improving conditions raise questions over the costs, risks and necessity of the incentives

FCNR (B) swap facility covers only principal, excludes interest: RBI

The Reserve Bank of India (RBI) on Tuesday said the swap facility for foreign currency non-resident deposits (FCNR) is a simple foreign exchange swap, but only covers the original principal amount, not the interest. The RBI also said banks are permitted to extend loans to the FCNR (B) account holders and mark a lien on such deposits, the central bank said in FAQs on Swap Facility for FCNR (B) deposits, External Commercial Borrowings and Overseas Foreign Currency Borrowing. On June 8, the RBI introduced a special US dollar-rupee forex swap scheme to enable banks to mobilise fresh FCNR (B) deposits without hedging risk, a move aimed at attracting foreign capital. Banks have been permitted to offer higher returns on dollar deposits in an FCNR(B) Account with a tenure of three to five years. Foreign Currency Non-Resident (Bank) deposits help NRIs earn in foreign currency while protecting savings from rupee depreciation risk. "Reserve Bank of India will be providing a Forex Swap for the

RBI defended rupee with $8.94 billion net dollar sale in April: Bulletin

The central bank remained a net seller in the spot forex market as the rupee came under pressure from geopolitical tensions and persistent foreign outflows

Forex reserves fall $10 bn as decline in gold prices drags overall holdings

India's foreign exchange reserves recorded their steepest weekly decline since March, with a sharp fall in gold reserve valuations offsetting gains in foreign currency assets

RBI's FCNR(B) scheme may help NRIs earn up to 27 per cent returns

Brokerages estimate leveraged FCNR(B) deposits could generate annual returns of up to 27 per cent for NRIs while helping banks attract $30-60 billion in fresh foreign currency inflows

India needs patient capital to build atmanirbhar industrial capacity

Every major industrial power has relied on long-duration strategic capital. If India insists on pure market competition, the playing field will remain inherently asymmetric

Why India is worried about gold imports & what it means for you | West Asia war | Foreign exchange

India has raised import tariffs on gold and silver to 15 per cent from 6 per cent, as part of efforts to curb overseas purchases of the metals

India's foreign exchange reserves up by $938 mn to $682 bn, says RBI

India's forex reserve jumped by USD 938 million to USD 682.321 billion during the week ended May 28, the Reserve Bank said on Friday. In the previous reporting week, the kitty dropped USD 7.511 billion to USD 681.384 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 Middle East conflict which led to several weeks of a drop as the rupee came under pressure and the RBI had to intervene in the forex market through dollar sales. Prime Minister Narendra Modi has also made multiple public appeals starting May 11 to countrymen to conserve forex by cutting down on foreign travel, limiting fuel use and refraining from gold buys for a year. For the week ended May 29, foreign currency assets, a major component of the reserves, increased USD 3.116 billion to USD 546.148 billion, the central bank's data showed. Expressed in dollar terms, the foreign currency assets include effects of appreciation or ..

India needs fiscal space, not just subsidies, to weather crises

If India had created more fiscal space in the three good years following the end of the Covid crisis in 2022-23, it would have more options to deal with the current one

Mini crisis, self-inflicted: Policy missteps leave the rupee under pressure

India's forex stress reflects delayed reforms, weak capital inflows and a widening current-account deficit, underscoring the need to attract long-term investment

Rupee logs sharpest gain in 2 months; best-performing Asian currency

The rupee rose sharply on lower crude oil prices and likely RBI intervention, even as India's foreign exchange reserves fell to their lowest level in over a year

Companies face tougher investor scrutiny as rupee hits record lows

The rupee has lost about 10 per cent against the dollar over the past 12 months, the worst performance among Asian currencies

FM Sitharaman forgot fourth F - falling private investment: Congress

The Congress on Tuesday said Finance Minister Nirmala Sitharaman had forgotten the "all-important fourth F" -- falling rates of private investment -- while calling for greater focus on the "3Fs" of fuel, fertiliser, and forex. Congress general secretary in charge of communications, Jairam Ramesh, said winning elections through large-scale manipulation of electoral rolls is one thing, but recognising what really ails the economy with humility and sobriety and taking remedial actions is an entirely different matter. "The FM has said that the 3Fs -- Fuel, Fertilisers, and Forex -- are matters of great concern. But she forgets the all-important fourth F: Falling rates of private investment that have been in evidence these past few years," Ramesh said on X. He pointed out that net FDI inflows have declined, while private corporate investment as a percentage of GDP has fallen to half of its pre-2014 peak. Indian businesses are seeking more predictable and profitable ventures abroad, and .

Govt mulling emergency measures to protect foreign-exchange reserves

Officials in the Prime Minister's Office and Finance Ministry have held discussions with the Reserve Bank of India on several measures that could be taken to limit the damage from soaring oil prices

FY27 CAD likely to widen amid West Asia headwinds, say economists

Economists broadly agree that this financial year is shaping up to be tougher than the last for the external account

India's forex kitty drops by $7.79 billion to $690.693 billion: RBI

India's forex reserves dropped by USD 7.794 billion to USD 690.693 billion during the week ended May 1, the RBI said on Friday. In the previous reporting week ended April 24, the overall reserves had declined by USD 4.82 billion to USD 698.487 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 beginning of the Middle East conflict, which led to several weeks of a drop as the rupee came under pressure and the RBI had to intervene in the forex market through dollar sales. For the week ended May 1, foreign currency assets, a major component of the reserves, decreased by USD 2.797 billion to USD 551.825 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 decreased by USD 5.021 billion to USD 115.216 billio

RBI not to consider fresh applications for full-fledged money changers

RBI has stopped fresh approvals for full-fledged money changers and directed authorised persons to phase out franchisee arrangements within two years

Opinion: India has window of opportunity to unlock tourism boom from Europe

India's improving value perception, geopolitical stability and diverse offerings create a rare opportunity to sharply increase foreign tourism revenues from Europe if approached systematically