India just went from $3.39B to $15.2B in US Treasuries in ONE MONTH.
What triggered this?
RBI's special dollar flow scheme pulled in $13.4B between June-August, mostly NRI deposits. Now they're sitting on a fat stack of dollars.
Why park it in Treasuries?
• Earn yield while staying liquid
• Stack reserves for rupee defense
• Build ammunition for FX interventions
• Diversify away from pure cash holdings
This is classic central bank playbook when inflows surge. Watch the INR closely—more firepower means RBI can step in harder if rupee weakens.
What triggered this?
RBI's special dollar flow scheme pulled in $13.4B between June-August, mostly NRI deposits. Now they're sitting on a fat stack of dollars.
Why park it in Treasuries?
• Earn yield while staying liquid
• Stack reserves for rupee defense
• Build ammunition for FX interventions
• Diversify away from pure cash holdings
This is classic central bank playbook when inflows surge. Watch the INR closely—more firepower means RBI can step in harder if rupee weakens.
