Rupee breathes via borrowed dollars as RBI swap window closes

India's money, the rupee, was losing value compared to other countries' money.

To help, the Reserve Bank of India, the country's central bank, made a special deal to bring in dollars from Indians living abroad.

These people could put their foreign money in Indian banks and earn good interest without worrying about the rupee going down.

Between June 8 and August 13, banks collected $52.3 billion this way.

The central bank even paid some of the costs to make the deal attractive.

But this money is borrowed, not earned by selling things to other countries.

It has to be paid back in three to five years.

So India bought time, but the risk does not disappear — it moves to the government and the banks.

India still needs to earn more dollars by selling more goods and services.