India's Forex Facility to Close Amid Strong Inflows

The Reserve Bank of India has announced that it will close its special USD-INR forex swap facility on August 31, 2026, due to strong foreign exchange inflows. As of August 13, total inflows under the facility stood at $56.85 billion, with $52.30 billion coming from FCNR(B) deposits, $2.81 billion from OFCBs, and $1.74 billion from ECBs.

The RBI will allow swaps against eligible FCNR(B) deposits until September 11, 2026, while the facility for ECBs and OFCBs will remain open until December 31, 2026.

Meanwhile, foreign portfolio investors (FPIs) have been net buyers in the Indian equity market, purchasing shares worth Rs 508.12 crore on August 14, and Rs 11,198.70 crore so far in August.

The global markets are also watching closely as Brent crude hovers around $89 a barrel, driven by concerns over the Middle East conflict and supply risks.