No need to panic over maturing FX swaps

There still appears to be some confusion over the potential market impact when the RBI’s FX swap facilities mature next month. The RBI has already confirmed that the maturing swaps have been covered by purchases of currency forwards. What’s more, even if there is a temporary blip in the central bank’s FX reserves, the key point is that India’s external position is far stronger now than three years ago.

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