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India gets $32bn from dollar swap window
December 2, 2013, 9:28 am

Forex reserves had risen by $1.51 billion to touch $279.24 billion for the week ended October 11  [AP]

Forex reserves had risen by $1.51 billion to touch $279.24 billion for the week ended October 11 [AP]

The Indian government has announced that the central bank has received $32 billion from the special swap windows for deposits by non-resident Indians and overseas foreign currency borrowings by banks.

“$32 billion (as on date) that we have received on FCNR (B) and bank capitalisation,” said Indian’s Economic Affairs Secretary Arvind Mayaram at the India Economic Conclave in Delhi.

The Reserve Bank of India (RBI) had announced the swap windows for foreign currency non-resident (bank) deposits and overseas borrowings by banks on September 4.

The move was fuelled by the rupee declining about 30 per cent against the US dollar between April and August.

The facility was open till November 30.

The Indian official also said that with the foreign exchange reserves and the renewed influx of capital, the country is prepared for the US Federal Reserve’s ending or tapering its $85 billion stimulus programme.

Emerging economies, particularly in Asia, have been holding their breath in anticipation of the Federal Reserve scaling back its stimulus programme, as the US economy showed signs of recovery.

Manmohan Singh, the economist Indian Prime Minister, said in August this year that the US Fed Chief Ben Bernanke’s comments had hurt the Indian rupee.

“In a more equitable world order, it is only appropriate that the developed countries – in pursuing their fiscal and monetary policies – should take into account the repercussions on the economy of emerging countries,” said Singh.

Source: Agencies

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