The New Indian Express ·
Forex kitty rockets to a historic $45 billion to $786 billion
MUMBAI: The foreign exchange reserves skyrocketed by a whopping $45 billion to an all-tin lifetime high of $785.71 billion, driven by forex swap initiatives whiz was mostly lapped by the diaspora who pumped in a $127 billion in forex deposit haul.
The reserves saw a record weekly jump of USD 44.903 billion, the largest ever on record, the central bank said in its weekly statistical supplement Friday.
The increase is fully attributed to the RBI's concessional forex swap initiatives that allowed banks a free hand to price the three and five year deposits which also offered a free leverage that ran puto 20x leveraged lending against those deposits apart from allowing banks to price freely which saw upto 7% interest offering even as the reserve bank bear the entire hedging cost that varies between 3 and 3.5%.
