India Rules Out Early End To FX Deposit Plan, Sees Healthy Flows

India said it is not considering an early closure of its diaspora deposit attraction program, with the central bank expecting robust inflows through the window that runs until end-September. The stance is effectively a backstop for expected deposit-related funding flows, but it is unlikely to be a major market-moving event beyond emerging-market liquidity positioning.

Analysis

India said it is not considering an early closure of its diaspora deposit attraction program, with the central bank expecting robust inflows through the window that runs until end-September. The stance is effectively a backstop for expected deposit-related funding flows, but it is unlikely to be a major market-moving event beyond emerging-market liquidity positioning.