4 hrs ago
India’s Rupee Rises After RBI Secures $136 Billion Inflows
India’s central bank collected a very large amount of foreign money through special programs.
About $127 billion came from dollar deposits by overseas citizens.
Another $9.15 billion came through two other programs.
Together, the programs raised roughly $136 billion.
This was much more than the central bank had expected.
The rupee became stronger against the dollar after the announcement.
Officials and analysts said the money gives the central bank more ability to support the rupee.
The programs were created after investment outflows had pushed the rupee to record lows.
Indian lenders collected about $127 billion in dollar deposits through a special program for overseas citizens.
Two other Reserve Bank of India programs brought in an additional $9.15 billion.
The combined inflows of roughly $136 billion exceeded the central bank governor’s $80 billion estimate.
The rupee strengthened as much as 0.7% to 94.2713 per dollar, its highest level in more than a month.
The measures were introduced to offset capital-market outflows and give the central bank more capacity to defend the currency.
- Who
- The Reserve Bank of India, Indian lenders, overseas citizens, and currency traders were involved.
- What
- The Reserve Bank of India raised roughly $136 billion through foreign-exchange and deposit programs, helping the rupee strengthen.
- Where
- The measures involved India’s banking and foreign-exchange markets.
- When
- The inflow figures were announced late Wednesday, and the rupee strengthened on Thursday.
- Why
- The programs were launched to offset capital-market outflows and increase the central bank’s ability to defend the rupee.
Key facts
- Total inflows
- Approximately $136 billion
- Overseas-citizen deposits
- About $127 billion
- Other program inflows
- $9.15 billion
- Earlier estimate
- $80 billion, according to Governor Sanjay Malhotra’s estimate last month
- Rupee’s Thursday gain
- As much as 0.7%
- Rupee exchange rate
- 94.2713 per dollar
- Programs announced
- Early June
Quotes
Michael Wan
Senior currency analyst at MUFG Bank Ltd.
“The key message to our clients is: the risk of sharp rupee depreciation has been curtailed with RBI’s foreign-exchange measures”
theprint.in
Sources
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