 "RBI receives $15.2 bn under forex swap window")
The Reserve Bank of India (RBI) has received $15.2 billion under the special concessional window to swap Foreign Currency Non-Resident (Banks) or FCNR (B) deposits and foreign currency borrowings till date, the banking regulator said on Wednesday.
RBI had introduced this window in early September to check volatility in the rupee against the dollar. The scheme is valid till November 30.
Under the arrangement, banks are permitted to swap fresh FCNR(B) dollar funds, mobilised for a minimum tenor of three years, at a fixed rate of 3.5 per cent a year for the tenor of the deposit.
According to data released by RBI last Friday, foreign exchange reserves of the central bank rose by over $8 billion during the seven weeks starting from the week ending September 6, when it had touched a three-year and three- month low.
On Wednesday, the rupee ended at a five-week low, owing to dollar buying by state-run banks and weak sentiments in the equity market. The rupee ended at 62.40 on Wednesday, compared to the previous close of 61.63 a dollar. Tracking the weak rupee, government bond yields rose. The yield on the 10-year benchmark government bond ended at 8.82 per cent, compared to the previous close of 8.74 per cent.
According to RBI, it is better prepared to face the US Fed's tapering. “We are in a better position to face tapering as and when it occurs,” said RBI Governor Raghuram Rajan in a post monetary policy conference call for analysts and researchers. The Street does not expect the US Fed to roll back its stimulus at least for the next few months.
RBI had introduced this window in early September to check volatility in the rupee against the dollar. The scheme is valid till November 30.
Under the arrangement, banks are permitted to swap fresh FCNR(B) dollar funds, mobilised for a minimum tenor of three years, at a fixed rate of 3.5 per cent a year for the tenor of the deposit.
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RBI had also relaxed the norms for banks and allowed them to raise capital abroad to the tune of 100 per cent of their tier-1 (equity) capital.
According to data released by RBI last Friday, foreign exchange reserves of the central bank rose by over $8 billion during the seven weeks starting from the week ending September 6, when it had touched a three-year and three- month low.
On Wednesday, the rupee ended at a five-week low, owing to dollar buying by state-run banks and weak sentiments in the equity market. The rupee ended at 62.40 on Wednesday, compared to the previous close of 61.63 a dollar. Tracking the weak rupee, government bond yields rose. The yield on the 10-year benchmark government bond ended at 8.82 per cent, compared to the previous close of 8.74 per cent.
According to RBI, it is better prepared to face the US Fed's tapering. “We are in a better position to face tapering as and when it occurs,” said RBI Governor Raghuram Rajan in a post monetary policy conference call for analysts and researchers. The Street does not expect the US Fed to roll back its stimulus at least for the next few months.