RBI net sold $1.62 billion in spot forex market in February: Bulletin

Rupee

The Reserve Bank of India (RBI) sold net $1.62 billion worth of foreign exchange in the spot market in February, according to the central bank’s monthly Bulletin shared on April 22.

The central bank’s bulletin said that RBI purchased $45.03 billion and sold $46.65 billion of foreign exchange during the period. In January, the central bank had sold a net of $11.14 billion in the spot market.

The RBI Bulletin is a monthly publication that offers insights into the developments in domestic and global economies but doesn’t represent the views of the central bank.

The Indian rupee (INR) appreciated by 0.5 per cent during March 2025 compared to a month ago, supported by FPI inflows and year-end dollar receipts from inter-company borrowings. However, INR volatility was driven by elevated global uncertainty, the RBI bulletin said.

The INR depreciated by one per cent (MoM) in terms of the 40-currency real effective exchange rate (REER) in March 2025 due to rupee’s depreciation in nominal effective terms and widening of India’s inflation differential with major trading partners, the bulletin added.

As on April 11, 2025, India held foreign exchange reserves worth $ 677.8 billion, sufficient for about 11 months of imports and 94 per cent of external debt outstanding as of December 2024. At the current level, India holds the world’s fourth largest foreign exchange reserves.