Dollar deposits push India's forex reserves to record in Aug 28 week
By Aboki Forex —
India's foreign exchange reserves hit a fresh record for the week ended August 28, helped by dollar deposits drawn through central bank schemes.
The Reserve Bank of India launched the measures in June to attract overseas funding and support the rupee.
What the RBI introduced
India introduced discounted hedging facilities for overseas borrowings by state-owned companies and banks. It also introduced a facility for banks raising foreign-exchange deposits overseas.
Inflows from dollar deposits
The RBI received inflows through these schemes. The overwhelming majority of the inflows came from dollar deposits.