Reserve Bank of India (RBI) on Wednesday additional liberalised norms to spice up inflows of overseas change, together with doubling the borrowing restrict below the ECB route, amid the rupee falling in opposition to the US greenback.
In an announcement, the central financial institution stated it has been intently and repeatedly monitoring the liquidity circumstances within the foreign exchange market and has stepped in as wanted in all its segments to alleviate greenback tightness with the target of making certain orderly market functioning.
Reserve Bank of India (RBI) on Wednesday additional liberalised norms to spice up inflows of overseas change, together with doubling the borrowing restrict below the ECB route, amid the rupee falling in opposition to the US greenback.
In an announcement, the central financial institution stated it has been intently and repeatedly monitoring the liquidity circumstances within the foreign exchange market and has stepped in as wanted in all its segments to alleviate greenback tightness with the target of making certain orderly market functioning.
The measures taken by the central financial institution comes within the backdrop of rupee depreciating by 4.1 per cent in opposition to the US greenback throughout the present monetary 12 months to date (as much as July 5) amid the continuing geopolitical tensions.
“In order to further diversify and expand the sources of forex funding so as to mitigate volatility and dampen global spillovers”, the central financial institution stated it has determined to undertake 5 measures to reinforce foreign exchange inflows whereas making certain total macroeconomic and monetary stability.
The measures embody easing norms for FPI funding in debt market, and rising the External Commercial Borrowing (ECB) restrict below the automated route from USD 750 million or its equal per monetary 12 months to USD 1.5 billion.
“In order to further diversify and expand the sources of forex funding so as to mitigate volatility and dampen global spillovers”, the central financial institution stated it has determined to undertake 5 measures to reinforce foreign exchange inflows whereas making certain total macroeconomic and monetary stability.
The measures embody easing norms for FPI funding in debt market, and rising the External Commercial Borrowing (ECB) restrict below the automated route from USD 750 million or its equal per monetary 12 months to USD 1.5 billion.
Source: www.financialexpress.com”