RBI Swap Facility Draws $72.85 Billion Forex Inflows as of August 21

Forex inflows under the RBI’s special dollar/rupee swap facility reached $72.85 billion as of August 21. FCNR(B) deposits accounted for $65.40 billion, or nearly 90% of the total inflows, the RBI said.

Overseas Foreign Currency Borrowings contributed $4.86 billion, while External Commercial Borrowings brought in $2.59 billion.

The RBI introduced the special dollar/rupee swap facility on June 8, covering FCNR(B) deposits, ECBs and OFCBs.

The FCNR(B) window will remain open until August 31, while the ECB and OFCB windows will continue until Dec 31.

The central bank had announced on August 14 that it would close the FCNR(B) window a month earlier than initially planned.

Under the facility, the RBI absorbs dollar inflows through swaps, injecting rupee liquidity into the banking system while adding to its forward dollar liabilities.