RBI Closes FCNR(B) Swap Early: Cost Just a Tiny Slice

The Reserve Bank of India decided to close its FCNR(B) swap facility a month early! With a hedging cost of $10.5 billion being just a drop in the ocean of their $700 billion forex reserves, they’re ready to celebrate. Having already gathered over $52 billion, they could hit $85 billion soon. They hit their target and called it a day!