# Global banks unwind India currency trades worth billions after RBI warning | Banking News - Business Standard

> Foreign banks were forced by the Reserve Bank of India to unwind billions of dollars of currency swap trades after the central bank warned of a regulatory breach. The trades had used rupee deposits converted to dollars to buy foreign sovereign debt.

- Date: 2021-08-11 · published 2021-08-11T12:00:00.000Z
- Category: policy · region India · magnitude low
- Page: https://feedsoft.ai/events/45843-global-banks-unwind-india-currency-trades-worth-billions-after-rbi-warning
- Commodities: [Indian Rupee (INR per USD)](https://feedsoft.ai/c/USDINR.md)

## Why it matters

The unwinding of dollar-buying arbitrage affects rupee and dollar flows, a financial-market story with little direct effect on feed commodity supply or demand.

## Read by commodity

- USDINR: neutral

## Sources

- business-standard.com: https://www.business-standard.com/article/finance/global-banks-unwind-india-trades-worth-billion-dollars-after-rbi-warning-121081100323_1.html

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