$127 Billion: RBI’s Massive Forex Move Gets a Huge Response

India has just pulled in a record $127.23 billion through FCNR(B) deposits under the RBI’s special forex swap facility. 💰🇮🇳

But why was RBI doing this?

The objective was simple — bring more foreign currency into India and strengthen the country’s forex buffer, especially when the rupee was under pressure.

🔹 $127.23B came through FCNR(B) deposits

🔹 Total forex mobilisation reached $136.38B

🔹 Forex reserves climbed to a record $729.3B

🔹 The rupee strengthened to around ₹94.30/$ today 📈

What makes this even more interesting? 👀

The RBI had expected only around $40–50 billion from FCNR(B), but the response was more than double expectations. The strong inflows give RBI more firepower to manage rupee volatility.

However, there’s another side: these deposits create future dollar liabilities for banks/RBI.

So, is this a smart rupee-support move or a costly one? 🤔