FCNR(B) swap cost unlikely to have driven RBI’s early closure: SBI Research report

SBI Research said the cost of the RBI’s FCNR(B) swap facility is unlikely to have driven its early closure. The report estimated hedging costs at USD 10.5 billion over five years. "Thus, the notional cost of the FCNR(B) swap remains relatively small compared with the size of the reserve buffer."