India's FCNR-B Dollar Bonanza: $100B Windfall or a Temporary Sugar High?

The RBI's FCNR-B swap facility has turned into a foreign currency magnet, pulling in nearly $2 billion a day. Jefferies now expects total mobilization to hit $90-100 billion by August 31, shattering earlier estimates of $70-80 billion. As of August 21, the finance ministry confirmed $73 billion has already been mobilized through FCNR-B deposits, OFCBs, and ECBs since the scheme opened in June. This is a massive liquidity boost for Indian banks and a clear win for the...