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Centre sees no cost pain for RBI on dollar deluge

Finance · 2 updates

Centre sees no cost pain for RBI on dollar deluge

New Delhi | Mumbai: The Centre does not expect the Reserve Bank of India (RBI) to face material costs from the unprecedented $127-billion inflows through forex inflow schemes underpinned by a swap facility, people aware of the details of the dedicated plans that closed August 31 told ET.This assessment comes amid concerns the foreign currency non-resident-bank (FCNR-B) and other forex inflow programmes may have a high cost for the central bank, stemming largely from hedging and liquidity management expenses.The RBI is, however, expected to earn good returns when these record inflows are deploy

$127-bn pain may actually be RBI's jackpot

New Delhi | Mumbai: The Centre does not expect the Reserve Bank of India (RBI) to face material costs from the unprecedented $127-billion inflows through forex inflow schemes underpinned by a swap facility, people aware of the details of the dedicated plans that closed August 31 told ET.This assessment comes amid concerns the foreign currency non-resident-bank (FCNR-B) and other forex inflow programmes may have a high cost for the central bank, stemming largely from hedging and liquidity management expenses.The RBI is, however, expected to earn good returns when these record inflows are deploy

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