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RBI mobilises $40.8 billion under forex swap facility
The Hindu··2 Aug
The Reserve Bank of India said $40.816 billion was mobilised under its forex swap facility by July 31, 2026, including $36.725 billion through the FCNR(B) deposit scheme. The facility opened on June 8 to manage dollar liquidity and support the rupee. The figure shows strong uptake within the first two months of the window.
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What It Means For You
- Anyone tracking the rupee's stability can see the RBI actively using swap tools to manage dollar liquidity in the banking system.
- Businesses relying on stable forex markets benefit when the central bank mobilises large dollar inflows through structured swap windows.
- Investors following RBI policy gain a data point on how much foreign currency the bank has pulled in since opening the facility in June.
What's Happening
- The Reserve Bank of India said $40.816 billion was mobilised under its forex swap facility by July 31, 2026.
- Of that total, $36.725 billion came through the FCNR(B) deposit scheme, with the remainder through other swap channels.
- The facility opened on June 8 as part of the RBI's toolkit to manage dollar liquidity and support the rupee.
Dollar Inflows Through A Swap Window
- Forex swap facilities let banks swap dollar deposits for rupees, boosting dollar reserves while injecting rupee liquidity into the system.
- The FCNR(B) scheme allows non resident Indians to hold foreign currency denominated deposits at guaranteed rates, a tool the RBI has used in past stress periods.
- The July 31 figure gives markets a concrete sense of how much uptake the June facility attracted within its first two months.
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