Foreign Exchange

Rising forex reserves

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

India's forex reserves rise $12.4 billion to record high of $729.3 billion

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

Public sector banks underparticipate in forex derivatives mkt: RBI DG Jain

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 cost of exchange rate policy: What is the price of controlling rupee?

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

Currency defence gets makeover as central banks in Asia guard reserves

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

Exim Matters: RBI must rethink matching every trade entry with remittances

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

Compare forex cards on total costs and complete transparency in charges

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

Dollar slips as Iran truce hopes lift risk appetite before Fed meeting

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

1991 reforms trusted mkts; now RBI should trust exporters and importers

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

Why a weaker rupee is not necessarily a sign of economic weakness

A stable economy does not require a permanently stable exchange rate

India's forex kitty jumps $964 million to $675.15 billion: RBI data

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 ...

Mobilisation test: Foreign banks' leverage key to FCNR (B) inflows

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 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