Currency Swap

Dominance of flows has dulled the rupee's sensitivity to daily swings in its Asian peers, allowing the downside momentum to build and raising expectations of depreciation and speculative activity

In June, the RBI had said that of the outstanding ECBs of $180 billion, 44 per cent was unhedged

TMS Ep252: Auto sector, NDTV acquisition, markets, currency swap

Has Indian auto sector entered the fast lane? Will NDTV turn out to be Adani's most challenging acquisition? Will FII flows reduce rate hike fears this week? What is a currency swap? All answers here

What is a currency swap?

India has extended the duration of the $400 million currency swap facility extended to Sri Lanka, which is in dire straits. But what exactly is currency swap? This report offers an insight

This is backed by trade in minerals, which is essential for India to build chip industry, expand renewable energy

CEA Nageswaran said that the depreciation of the rupee against the US dollar has been lower than other major global currencies such as the Euro, the British pound and the Japanese yen

The rupee is partially convertible. It attained current account convertibility in the early- through mid-1990s. This means the rupee can be converted to any foreign currency at existing market rates

Sri Lanka is discussing with China to amend terms and conditions of $1.5 bn currency swap deal so that it can be used for imports amidst an unprecedented economic crisis in this island nation

The currency has slumped more than 45 this year amid concern the RBI is behind the curve in tackling inflation, with elevated crude oil prices adding to pressures on the net

In May 2021, Bangladesh cleared a $200 mn currency swap facility for Sri Lanka, to help boost its economy, becoming 1st South Asian country to extend crucial financial assistance to Colombo this year

In the auction, the RBI has accepted $5.135 billion against the notified amount of $5 billion

Sri Lanka will exchange currency with China under a 10 billion yuan (about $1.5 billion) deal aimed at promoting trade and investment between the two countries, the island nation's central bank said

The Central Bank of Sri Lanka is entitled to a 10 billion yuan ($1.5 billion) swap facility from the People's Bank of China, Sri Lanka's monetary authority said in a statement Monday

Banks are being asked to say which types of the derivatives they clear in Britain they would consider "the easiest to clear" at an EU clearer instead, a sign of a potentially targeted approach

Sri Lanka owes about $960 million to India and earlier this year India agreed to a $400 million currency swap facility for Sri Lanka until November 2022

The Fed's balance sheet fell to $7.14 trillion on June 17 from $7.22 trillion a week earlier

The framework provides certain concessions for swap drawals in Indian rupee, the RBI said

The success of RBI's currency-swap auctions is leading to exaggerated moves in the onshore forwards market, making it harder for cos to hedge their foreign-currency borrowings