Forex mop-up under RBIs swap scheme reaches over $40 billion.

The Reserve Bank of India (RBI) has reported that total foreign exchange mobilization under its concessional dollar swap facility has surpassed $40 billion. This impressive figure represents more than a twofold increase within a mere two weeks, outpacing earlier deposit initiatives.

Foreign Currency Non-Resident (Bank) deposits accounted for the largest segment of these inflows, indicating a robust appetite among overseas investors for diversifying their investments in India. The concessional dollar swap facility is designed to incentivize funding from abroad, thereby strengthening the countrys foreign exchange reserves, which are crucial for maintaining economic stability.

This scheme, which enhances various types of deposits to attract foreign capital, is set to remain in effect until late 2026. It reflects the RBIs ongoing efforts to bolster Indias financial resilience and enhance the liquidity in the foreign exchange market. As global economic conditions evolve, the effectiveness of such initiatives will continue to be monitored closely.