India's RBI Eases Dollar Swap Rules for Banks

The Reserve Bank of India (RBI) has granted banks more frequent access to its dollar-rupee swap facility for transactions over $100 million, moving beyond the previous weekly limit. This aims to help banks manage a surge in dollar liquidity from a special non-resident Indian deposit scheme, which has attracted over $65 billion and closes on August 31. The measure seeks to prevent spikes in overnight dollar/rupee swap costs and broader hedging expenses. While this is an internal Indian market adjustment, it reflects a central bank's proactive efforts to maintain currency stability amidst significant capital flows, potentially offering a regional sentiment boost.

بحوالہ / Source: www.brecorder.com