FCNR(B) Inflows May Exceed $80 Billion: Report
Bank of America report says FCNR(B) deposits could top $80 billion despite RBI advancing closure of its zero-cost swap window.
New Delhi, August 17 — Foreign currency inflows through FCNR(B) deposits could exceed $80 billion despite the Reserve Bank of India advancing the closure of its swap window after stronger-than-expected flows, according to a report.
According to a report by Bank of America (BofA) Securities, the earlier projection of FCNR(B) inflows of up to $70 billion has now been revised to more than $80 billion, citing robust inflows since the facility was introduced. “We revise this up to the $80 billion+ given stronger flows,” the brokerage added.
The brokerage said the earlier closure of the facility would mean that inflows would remain below the level that could have been achieved had the window continued until September. However, it expects the revised estimate to have some clear upside from its earlier forecast.
