Banks Rush Overseas as RBI Forex Swap Window Nears Closure

The Reserve Bank of India created a special program to help banks bring dollars into India.

Banks could borrow dollars overseas and exchange them for rupees at a cheaper rate.

Later, they could exchange the rupees back into dollars.

The RBI also agreed to pay the cost of protecting against currency changes.

This made raising money overseas less expensive for banks.

Banks raised almost $73 billion in just 11 weeks.

The FCNR (B) part of the program became so popular that it will close early on August 31.

Banks are now trying to use other overseas borrowing routes before the remaining deadline.