A surge in foreign currency inflows, driven by the rupee-support measures introduced by the central bank a little over a month ago, is boosting confidence in India’s balance of payments, especially amid rising oil price volatility.
In its first update since the scheme was launched in early June, the Reserve Bank of India (RBI) said the steps had attracted $20.72 billion up to July 17, with foreign currency non-resident (FCNR) deposits contributing around $17.5 billion.
Economists believe this data could ease concerns about a slow response to the scheme and doubts over whether it would bring in the expected level of inflows.
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