RBI payout may slump in disappointment for markets, fund says
4 years, 5 months ago

RBI payout may slump in disappointment for markets, fund says

Live Mint  

Bond traders pinning their hopes on a larger-than-budgeted central bank payout to Prime Minister Narendra Modi’s government may be in for a disappointment, according to Quantum Advisors Pvt. The Reserve Bank of India will probably transfer as much as ₹60,000 crore for the year to June 30, sticking with estimates unlike last year when the payment was almost double the amount budgeted, said Arvind Chari, Mumbai-based head of fixed income at Quantum. “If this is true, it will be a negative surprise to the markets,” as “the expectation was for a higher transfer from the RBI given the dire fiscal situation.” The transfer of the central bank’s excess capital has been a contentious issue between the central bank and the government and was one of the reasons that led to Governor Urjit Patel resigning in 2018. Due to a change in the accounting norms, the RBI is likely to earn about ₹25,000 crore from its foreign-exchange operations, compared with ₹29000 crore last year, Chari said.

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History of this topic

India’s forex reserves drop $2 bn to $653 bn in December; RBI estimates 11-months of import amid multi-month low
13 hours, 31 minutes ago

India’s forex reserves drop $2 bn to $653 bn in December; RBI estimates 11-months of import amid multi-month low

Live Mint  

India's foreign exchange reserves are sufficient to meet over 11 months of import needs and nearly 96 per cent of external outstanding debt requirements as of the end of June 2024, reported the news agency ANI citing the Reserve Bank of India on Tuesday, December 24. The forex reserves rose $6.4 billion in the financial year 2024-25 to $652.9 billion …

India’s Forex Reserves rebound after 8 weeks of decline amid global uncertainty
2 weeks, 3 days ago

India’s Forex Reserves rebound after 8 weeks of decline amid global uncertainty

Live Mint  

India's foreign exchange reserves have seen a resurgence after an eight-week decline that pushed them to multi-month lows. According to data released by the Reserve Bank of India earlier this week, reserves increased by USD 1.51 billion, reaching USD 658.091 billion for the week ending November 29. This recovery follows a sustained dip from September's all-time high of USD 704.89 …

India’s foreign exchange reserves decline for eighth consecutive week
Trending News
3 weeks, 3 days ago

India’s foreign exchange reserves decline for eighth consecutive week

Live Mint  

New Delhi, December 1 : India's foreign exchange reserves slumped for an eighth consecutive week to hit a multi-month low of USD 656.582 billion in the week that ended on November 22, data from the Reserve Bank of India showed. The latest RBI data showed that India's foreign currency assets, the largest component of forex reserves, stood at USD 566.791 …

India’s forex reserves hit steepest weekly drop on record at over four month low to $657.8 billion; Here’s why
1 month ago

India’s forex reserves hit steepest weekly drop on record at over four month low to $657.8 billion; Here’s why

Live Mint  

India's foreign exchange reserves fell to a more-than-four-month low last week, marking the sharpest weekly fall on record, dragged by a stronger US dollar following the US election verdict. It also indicated the Reserve Bank of India likely sold dollars in the market to support the local currency and limit its further decline after it dropped to a record low …

India bond yields marginally down on value buys, fresh cues awaited
1 month, 1 week ago

India bond yields marginally down on value buys, fresh cues awaited

Live Mint  

By Dharamraj Dhutia MUMBAI, Nov 18 - Indian government bond yields trended slightly lower in early deals at the start of another holiday-truncated week amid value purchase from investors after yields rose last week. Meanwhile, U.S. Treasury yields edged higher on Friday and remained elevated during Asian hours as strong U.S. retail sales data and import prices lowered bets of …

‘Indian Rupee could face further depreciation…’: RBI’s new challenge of a strengthening US dollar — expert advice
1 month, 1 week ago

‘Indian Rupee could face further depreciation…’: RBI’s new challenge of a strengthening US dollar — expert advice

Live Mint  

Q2 results have nearly come to an end. The Nifty50’s PAT was forecasted to grow by 8.4% YoY, but the current actual growth is around 6.6%, with three company results to be released as on 13th Nov. Revenue growth was modest at 2.8% YoY, falling short of the 4.2% forecast and significantly lower than the 7.6% YoY growth observed in …

India’s forex reserves drop for fifth week amid RBI’s possible intervention to support rupee
1 month, 2 weeks ago

India’s forex reserves drop for fifth week amid RBI’s possible intervention to support rupee

India TV News  

India’s foreign exchange reserves fell for the fifth consecutive week, falling $2.675 billion to $682.130 billion in the week ended November 1, according to RBI data. The record reserves of $704.885 billion are slowly dwindling, likely due to RBI intervention to support the rupee. Reserve levels falling after all-time highs Recent reserve declines that peaked last month included $3.7 billion, …

India’s ‘sweet spot’ lures bond funds amid global market turmoil
4 months ago

India’s ‘sweet spot’ lures bond funds amid global market turmoil

Hindustan Times  

Global funds have poured money into India’s debt market for 14 weeks in a second streak of buying this year, evidence of the country’s appeal amid the ructions of worldwide financial markets. “India is in a sweet spot from a macro perspective and also from a monetary policy perspective,” said Jenny Zeng, chief investment officer for Asia Pacific fixed income …

India’s Booming Forex Reserves: Hidden Risks and Economic Concerns
5 months, 2 weeks ago

India’s Booming Forex Reserves: Hidden Risks and Economic Concerns

The Hindu  

Published : Jul 08, 2024 11:43 IST - 6 MINS READ Figures on India’s balance of payments in financial year 2023-24, released by the Reserve Bank of India recently, have added to the hype on India’s growth story. India’s current account deficit, or the surplus of current foreign exchange expenditures and outflows over current foreign exchange earnings and receipts, fell …

India's Forex Reserves Jump By $816 Million to $653.71 Billion; Details Here
5 months, 3 weeks ago

India's Forex Reserves Jump By $816 Million to $653.71 Billion; Details Here

News 18  

India’s foreign exchange reserves increased by $816 million to $653.711 billion during the week ended June 21, according to the latest RBI data. According to the latest RBI data released on June 28, India’s gold reserves rose $988 million to $56.956 billion during the week ended June 21, while the special drawing rights fell $57 million to $18.049 billion. For …

India's Forex Reserves Fall $2.92 Billion to $652.9 Billion, Gold Holding Falls $1 Billion
6 months ago

India's Forex Reserves Fall $2.92 Billion to $652.9 Billion, Gold Holding Falls $1 Billion

News 18  

After hitting all-time high levels following continuous gains, India’s foreign exchange reserves fell $2.922 billion to $652.895 billion during the week ended June 14, according to the latest data from the Reserve Bank of India. This decline follows a significant increase of $4.307 billion in the previous reporting week, which pushed the reserves to a record high of $655.817 billion …

India's forex reserves decline USD 2.922 billion to USD 652.895 billion, retreat from record highs: RBI
6 months ago

India's forex reserves decline USD 2.922 billion to USD 652.895 billion, retreat from record highs: RBI

India TV News  

In its latest report, the Reserve Bank of India said that India's foreign exchange reserves witnessed a decline of USD 2.922 billion to reach USD 652.895 billion as of June 14. Specifically, foreign currency assets, a pivotal component of the reserves, decreased by USD 2.097 billion to USD 574.24 billion during the same period, as indicated by the data released …

Forex Update: India's Foreign Exchange Reserves Fall $2 Billion to $646.67 Billion
6 months, 3 weeks ago

Forex Update: India's Foreign Exchange Reserves Fall $2 Billion to $646.67 Billion

News 18  

After rising for three consecutive weeks, India’s forex reserves fell $2.027 billion to $646.673 billion for the week ended May 24, according to the latest RBI data. For the week ended May 24, foreign currency assets, a major component of the reserves, decreased by $1.51 billion to $567.499 billion, the data released on May 31 showed. The recent data shows …

DC Edit | RBI’s booster shot to economy
7 months ago

DC Edit | RBI’s booster shot to economy

Deccan Chronicle  

The Reserve Bank of India transferred a whopping amount of Rs 2.1 lakh crores to the Central government as a dividend payout, giving a booster shot to volatile stock markets. The current payout is 141 per cent higher than the ₹87,416 crores that the RBI had given the Central government last year and is Rs 1.1 lakh crores more than …

Welcome bounty: On the RBI’s ₹2.11-lakh-crore transfer to the Union government
7 months ago

Welcome bounty: On the RBI’s ₹2.11-lakh-crore transfer to the Union government

The Hindu  

The decision by the Reserve Bank of India’s board to transfer a record surplus of almost ₹2.11 lakh crore to the Union government for 2023-24 will serve as a welcome shot in the arm for the new government when it presents its Budget in July. More than double the previous year’s ₹87,416 crore payout as well as the ₹1.02 lakh …

RBI approves ₹2.11 lakh crore dividend payout to govt for 2023-24
7 months ago

RBI approves ₹2.11 lakh crore dividend payout to govt for 2023-24

The Hindu  

The Reserve Bank of India on May 22 approved a ₹2.11 lakh crore dividend payout to the central government for 2023-24, more than double the amount it paid for the previous 2022-23 financial year. The decision was taken at the 608th meeting of the Central Board of Directors of the Reserve Bank of India held under the chairmanship of Governor …

Rupee unlikely to benefit from softer US payrolls, upbeat risk
7 months, 2 weeks ago

Rupee unlikely to benefit from softer US payrolls, upbeat risk

Hindustan Times  

By Nimesh Vora Rupee unlikely to benefit from softer US payrolls, upbeat risk MUMBAI, - The Indian rupee is likely to open largely unchanged on Monday, despite a drop in U.S. Treasury yields and the dollar after the monthly U.S. jobs report made it more likely that the Federal Reserve will cut interest rates later in the year. The 10-year …

India’s forex reserves hit 20-month high; jump to $615.971 billion: RBI
1 year ago

India’s forex reserves hit 20-month high; jump to $615.971 billion: RBI

Live Mint  

Amid heavy inflows in Indian debt and equity markets, India's foreign exchange reserves rose for the fifth straight week, reaching an over 20-month high of $615.97 billion as of December 15, according to the data released by the Reserve Bank of India on Friday. The Reserve Bank of India's intervention in forex markets along with valuation changes impact reserves. Foreign …

RBI says India’s growth momentum to continue in FY24; stresses on structural reforms
1 year, 6 months ago

RBI says India’s growth momentum to continue in FY24; stresses on structural reforms

The Hindu  

The Reserve Bank on May 30 said that India’s growth momentum is likely to continue in 2023-24 even as it made a case for pushing structural reforms to deal with the geopolitical developments and also to achieve sustained growth in the medium-term. The Reserve Bank’s annual report flagged slowing global growth, protracted geopolitical tensions and a possible upsurge in financial …

RBI may buy $18 bn of bonds to boost liquidity, says B. Prasanna of ICICI
1 year, 6 months ago

RBI may buy $18 bn of bonds to boost liquidity, says B. Prasanna of ICICI

Live Mint  

The Reserve Bank of India may buy nearly $18 billion of government bonds to replenish banking liquidity that’s expected to tighten later in the year, according to a report by Bloomberg. The central bank may cut the cash reserve ratio by half a point in the second half of the fiscal and start buying bonds in the December quarter to …

RBI board to meet today, expected to consider dividend payout to government
1 year, 7 months ago

RBI board to meet today, expected to consider dividend payout to government

Live Mint  

The Reserve Bank of India’s board will meet on today i.e. During the meeting, the board is expected to consider a dividend payout to the government, people with knowledge of the matter told Bloomberg. During the May board meeting, the authority typically reviews its finances and how much it can transfer to the government. Also Read: New rule for international …

India’s forex reserves rise by $4.53 bn to reach a 10-month high of $588.78 bn
1 year, 7 months ago

India’s forex reserves rise by $4.53 bn to reach a 10-month high of $588.78 bn

Live Mint  

India's forex reserves turned positive in the week that ended on April 28, 2023. As per RBI's data, forex reserves jumped by $4.532 billion to $588.780 billion in the April 28, 2023, week. Read here: Data recap: PMI hints at relief, Go First goes bust India's forex reserves were at an all-time high of $645 billion in October 2021. In …

India to buck global slowdown, maintain pace of expansion: RBI officials
1 year, 9 months ago

India to buck global slowdown, maintain pace of expansion: RBI officials

The Hindu  

Even as the global economy is set to slow down or even enter a recession in 2023 as financial markets worldwide face heightened uncertainty, the Indian economy is steadily gathering momentum, Reserve Bank of India officials headed by deputy governor Michael D. Patra wrote in an article in the March RBI Bulletin. “Unlike the global economy, India would not slow …

Budget 2023 may peg gross borrowing under ₹16 trillion: Report
1 year, 10 months ago

Budget 2023 may peg gross borrowing under ₹16 trillion: Report

Live Mint  

India's federal government is likely to keep its gross market borrowing below ₹16 trillion for 2023/24 as it does not want to destabilise the bond market with any negative surprises, two sources close to the deliberations said. The government has so far raised ₹12.93 trln up to Jan. 27, which is 91% of the overall gross borrowing target of ₹14.21 …

Falling reserves and the bogey of the RBI’s role
2 years, 2 months ago

Falling reserves and the bogey of the RBI’s role

The Hindu  

There is a widespread misconception that the Reserve Bank of India has been depleting India’s foreign exchange reserves to defend the rupee. The RBI cannot simply fritter away India’s forex reserves, held mostly in dollars, by charging its “nostro” account with the Federal Reserve Bank of New York, New York. Central bank as regulator, player and jury The RBI’s intervention …

‘India’s forex reserves to dip by $23 billion by December’
2 years, 2 months ago

‘India’s forex reserves to dip by $23 billion by December’

The Hindu  

India's depleted foreign exchange reserves are likely to drop further, falling to their lowest level in more than two years by end-2022, as the Reserve Bank of India continues to defend the rupee from the mighty dollar's rise, a Reuters poll found. In a battle that has so far failed to staunch the rupee's fall to a record low against …

Explainer | The free fall of the rupee
2 years, 5 months ago

Explainer | The free fall of the rupee

The Hindu  

The story so far: The Indian rupee hit an all-time low against the U.S. dollar this week weakening past the 79 rupees to a dollar mark and selling as low as 79.05 against the dollar on Wednesday. So, for instance, when there is great enthusiasm among foreign investors to invest in India, it can lead to an increase in the …

India's forex reserves slide to $600.42 billion; seventh straight weekly fall
2 years, 7 months ago

India's forex reserves slide to $600.42 billion; seventh straight weekly fall

Firstpost  

India’s forex reserves have fallen sharply after touching an all-time high of $642.453 billion on 3 September, 2021 Mumbai: India’s foreign exchange reserves dipped by $3.27 billion to $600.42 billion for the week ended 22 April, registering the seventh straight week of fall, as the Reserve Bank of India appears to keep selling dollars to prevent a slide in the …

India still vulnerable to 2013-like capital flight due to US monetary tightening, but forex reserves boost resilience
3 years, 5 months ago

India still vulnerable to 2013-like capital flight due to US monetary tightening, but forex reserves boost resilience

Live Mint  

India's $600 billion in reserves should help it fight market volatility from any U.S. monetary tightening, but analysts and traders warn a slowing economy and an expanding fiscal deficit still make it particularly vulnerable to capital flight. While India's increased currency reserves are expected to boost resilience this time -- $604 billion now compared with $270 billion in 2013 -- …

RBI may consider issuing bonds to help soak up foreign money into stocks
3 years, 9 months ago

RBI may consider issuing bonds to help soak up foreign money into stocks

Live Mint  

The Reserve Bank of India may consider issuing its own bonds to help soak up a deluge of foreign money into stocks that threatens financial stability, according to a report published by its researchers. “Enhancement of sterilization capacity may be necessary to deal with possible surges in capital flows in the future.” The RBI report recommended further strengthening foreign-exchange reserves, …

Bond investors see RBI curbing yields amid India’s supply deluge
3 years, 10 months ago

Bond investors see RBI curbing yields amid India’s supply deluge

Live Mint  

India is set to sell another Rs260 billion of bonds on Friday amid rising expectations that the central bank will step into the market to keep yields from rising too far. Surprise demand at a special auction of government debt on Thursday spurred talk that state-run banks and primary dealers were scooping up bonds to sell to the Reserve Bank …

RBI pushes yield on 10-year G-secs back to below 6%
3 years, 10 months ago

RBI pushes yield on 10-year G-secs back to below 6%

Live Mint  

The Reserve Bank of India on Thursday forced down yield on the 10-year benchmark bond below 6% in a special auction of government securities, smoothening the government’s massive borrowing programme. The ‘others’ category, which typically includes the monetary authority, insurance and pension funds, bought ₹25,000 crore of bonds in the secondary market, its biggest purchase, according to Clearing Corporation of …

Hopes fade for turnaround in Asia’s worst-performing currency of 2020
3 years, 11 months ago

Hopes fade for turnaround in Asia’s worst-performing currency of 2020

Live Mint  

The Reserve Bank of India signalled recently it won’t relent on dollar purchases that pushed the currency to the bottom of Asia’s currency rankings in 2020. The RBI’s comments suggest “the large FX intervention that the central bank undertook in 2020 totalling almost $120 billion will continue in 2021,” said Khoon Goh, head of research at Australia & New Zealand …

Bond turmoil on India’s cash drain shows market fragility
3 years, 11 months ago

Bond turmoil on India’s cash drain shows market fragility

Live Mint  

The Reserve Bank of India’s first steps to revive money-market rates proved how fragile sentiment remains, as a spike in bond yields spurred policy makers to announce more buying to quell the turbulence and protect the economy’s nascent recovery. The central bank’s first 14-day reverse-repurchase operation since March saw rates on short-dated sovereign bonds rise as much as 33 basis …

RBI squeezes money markets to spur selloff in shorter bonds
3 years, 11 months ago

RBI squeezes money markets to spur selloff in shorter bonds

Live Mint  

India’s key money-market rates and yields on short-term debt rose after the central bank took its first small step toward unwinding emergency pandemic measures. The interbank call rate rose to as much as 3.50% as against Friday’s weighted average of 3.18% while the yield on a five-year bond was up 10 basis points after the Reserve Bank of India said …

India’s bond rally unlikely to lure global funds: PineBridge
4 years, 3 months ago

India’s bond rally unlikely to lure global funds: PineBridge

Live Mint  

The gains in Indian bonds sparked by the central bank’s measures to ease the market’s debt-supply burden will peter out soon and foreigners are unlikely to buy unless government finances improve, according to PineBridge Investments. “The gap in the government’s budget needs to be filled for foreign investors to return over the long-term,” said Anders Faergemann, a London-based senior money …

RBI measures help bring 10-yr govt bond yield down by 17 bps, lowest in 3 months
4 years, 3 months ago

RBI measures help bring 10-yr govt bond yield down by 17 bps, lowest in 3 months

Live Mint  

The yield on government 10-year bonds fell over 17 basis points on Tuesday, the most in three months, after the Reserve Bank of India announced measures to allay the market fears over rising yields and higher borrowing programmes. It also announced additional open market operations worth ₹20,000 crore and term repo operations worth ₹1 trillion to infuse liquidity into the …

RBI’s silence on record India bond sales leaves traders baffled
4 years, 4 months ago

RBI’s silence on record India bond sales leaves traders baffled

Live Mint  

The Reserve Bank of India’s monetary policy review has come and gone but it’s done little to calm traders’ nerves over an unprecedented government bond supply. The market has so far been able to withstand the heavy government debt supply thanks to the central bank’s 115 basis points rate cuts this year and its Rs1.2 trillion of bond purchases from …

Indian bonds may come under pressure as RBI near end of easing cycle: PineBridge
4 years, 5 months ago

Indian bonds may come under pressure as RBI near end of easing cycle: PineBridge

Live Mint  

Indian bonds may start losing their appeal as the Reserve Bank of India nears the end of its easing cycle, according to PineBridge Investments Asia Ltd. “It is currently not an opportune time to invest in Indian bonds as yields will be back up from the current levels,” said Arthur Lau, head of Asia ex-Japan fixed income at PineBridge. The …

RBI buys so many US dollars that it ends up supporting debt market
4 years, 5 months ago

RBI buys so many US dollars that it ends up supporting debt market

Live Mint  

The Reserve Bank of India has accumulated so many dollars recently that it’s having a knock-on impact on the nation’s sovereign debt market. “The central bank’s FX policy is achieving multiple objectives of augmenting reserves, creating liquidity that’s helping demand for bonds, and at the same time curbing rupee volatility,” said Naveen Singh, head of fixed-income trading at ICICI Securities …

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