RBI considers allowing government banks to sell foreign currency bonds
The Reserve Bank of India (RBI) is thinking about letting government banks sell bonds in foreign currencies to bring in more dollars and support the struggling rupee.
The rupee has lost nearly 6% against the US dollar this year, making it Asia's worst performer so far.
These bonds might have five-year terms, but nothing's final yet.
RBI weighing foreign exchange swaps
High oil prices and big stock market outflows (more than $5 billion last April) have put serious pressure on the rupee and India's trade deficit.
To make these bonds safer for both banks and investors, the RBI is also considering foreign-exchange swaps, which would help banks offer better returns without taking on extra risk.
This isn't a brand-new idea, the State Bank of India used a similar move back in 2000 to raise billions of dollars.