India Raises Record $127 Billion in Foreign-Currency Deposits From Overseas Diaspora

According to Jin10, India has raised a record about $127 billion in foreign-currency inflows from its 35 million overseas diaspora since June through a special dollar swap window, giving policymakers more room to support the rupee as external pressure intensifies. India's central bank said on Wednesday that funds raised through so-called non-resident foreign currency deposits (FCNR(B)) reached $127.23 billion when the program ended, exceeding expectations, while inflows from overseas foreign-currency debt and external commercial borrowings added $9.15 billion for a total of $136.38 billion. The central bank said the extra buffer highlights India's growing ability to mobilize foreign exchange from its overseas diaspora during periods of market stress, and it echoed the strategy used during the 2013 taper tantrum, when similar measures raised about $26 billion in roughly three months and helped drive the rupee sharply higher. This time, however, the rupee was little changed from its June 5 level.