GENERAL2 Sept 2026
RBI may use FCNR(B) deposits to close $137 billion dollar shorts
The Reserve Bank of India may prioritise closing its $137 billion open short forward dollar positions using FCNR(B) deposits rather than rolling them over, according to experts and industry insiders. It has also begun absorbing surplus rupee liquidity to keep short-term money supply from feeding inflation. The rupee has weakened 7.22% to about ₹96. Economists caution that even hefty FCNR(B) inflows may not stop structural depreciation.
Key Statutory Highlights
- RBI's outstanding short forward dollar positions stand at $137 billion; it may not roll them over and instead deliver dollars using FCNR(B) deposits.
- RBI has begun absorbing rupee liquidity, which is at ₹6.5 lakh crore, to prevent short-term money supply from stoking inflation.
- The rupee has depreciated 7.22% against the dollar, trading around ₹96; economists doubt a structural appreciation even with FCNR(B) inflows.
Actionable Advice for Taxpayers / Founders:Businesses with foreign-currency exposure should watch RBI's liquidity actions and rupee movement, and review hedging strategies as exchange-rate direction remains uncertain.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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