India draws $136 billion in forex inflows, will strengthen ability to defend rupee

India attracted $136.3 billion in foreign exchange inflows through special measures, ​the Reserve Bank of India said on Wednesday.

The inflows boosted the country’s foreign exchange reserves and strengthened the central bank’s efforts to defend the rupee against external shocks amid global headwinds.

The rupee had fallen to a record low of nearly 97 per US dollar in May from about 91 against the dollar when the war in West Asia broke out. The rupee had recovered marginally to 94.4 per dollar as of Wednesday.

In June, the Reserve Bank had introduced a special United States dollar-Indian Rupee swap facility covering Foreign Currency Non-Resident Bank deposits, external commercial borrowings and overseas foreign-currency borrowings inflows.

The ‌measures to attract stable US dollar inflows had come amid pressure on import expenditure following a spike in global crude oil prices because of the war in West Asia.

Indian banks mobilised $127.2 billion through Foreign Currency Non-Resident Bank deposits when the scheme ended on Monday, data showed. The scheme allowed non-resident Indians to hold fixed-term deposits in the country in specific foreign currencies without converting the funds into Indian rupee.

India also mobilised $3.8 billion in external commercial borrowings and $5.2 billion in ​overseas foreign-currency borrowings. The two schemes will remain open till December 31.

The inflows of $136 billion was more...

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