# Higher forex reserves lower cost of foreign borrowings, hedging cost: RBI article - Times of India

> The Reserve Bank of India published an article saying higher forex reserves lower the cost of foreign borrowing and hedging for companies. It noted that reserves fell by $14.27 billion in March 2022 as capital outflows pressured the rupee.

- Date: 2022-04-18 · published 2022-04-18T12:00:00.000Z
- Category: macro · region India · magnitude low
- Page: https://feedsoft.ai/events/42144-higher-forex-reserves-lower-cost-of-foreign-borrowings-hedging-cost-rbi-article
- Commodities: [Indian Rupee (INR per USD)](https://feedsoft.ai/c/USDINR.md)

## Why it matters

Reserve drawdowns signal central bank willingness to defend the rupee, which limits currency swings that could otherwise raise Indian feed import costs.

## Read by commodity

- USDINR: neutral

## Sources

- timesofindia.indiatimes.com: https://timesofindia.indiatimes.com/business/india-business/higher-forex-reserves-lower-cost-of-foreign-borrowings-hedging-cost-rbi-article/articleshow/90920940.cms

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.