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RBI ran a similar FCNR(B) exchange window and you will banks increased around $26 billion within the new FCNR deposits inside a few months, helping stabilize the brand new rupee and you will reconstruct Asia's currency exchange reserves. With that step three.5% hedging rates removed, banks provides place to offer you prices that will be 150 to 200 basis things high. To protect against this, banks ordered individual money hedges, and this rates around 3.5% annually and you will smaller what they could offer depositors.

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