RBI dollar swap scheme nets $136.4 billion, reserves rise
The Reserve Bank of India's dollar swap scheme brought in a huge $136.4 billion by August, mostly thanks to nonresident Indians (NRIs) who parked their money in special deposits.
The RBI announced this move on 5 June and rolled it out three days later to attract dollars and strengthen the rupee, and it worked: India's foreign exchange reserves jumped from $681 billion to $729 billion.
Experts say surplus could exceed $50B
NRIs were drawn by returns as high as 14%, plus the RBI handled hedging risks for them.
The scheme was so popular it ended early on August 31, though swaps are open through September 11.
Experts say this windfall could mean over $50 billion surplus for India in FY27, but warn that a future dollar-denominated debt liability could mean an indirect fiscal cost through lower RBI dividends.