RBI's February Currency Market Activity: Net Purchases Reach USD 7.4 Billion
RBI purchases USD 7.4 billion in spot market in Feb, notes RBI Bulletin
Business Standard
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In February, the Reserve Bank of India (RBI) net purchased USD 7.4 billion from the spot currency market, marking a shift after seven months of net sales. The central bank's gross purchases totaled USD 21.4 billion, with sales at USD 14 billion.
- 01RBI net purchased USD 7.4 billion in February.
- 02Gross purchases were USD 21.4 billion, while sales were USD 14 billion.
- 03This marks the second consecutive month of net purchases by the RBI.
- 04January's net purchases were significantly lower at USD 2.5 billion.
- 05The previous seven months saw net sales by the RBI.
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The Reserve Bank of India (RBI) reported net purchases of USD 7.409 billion from the spot currency market in February, according to its monthly bulletin released on Thursday. This represents a significant turnaround for the central bank, which had recorded net sales for seven consecutive months prior to this. In February, the RBI's gross purchases amounted to USD 21.403 billion, while it sold USD 13.994 billion. This change follows January's net purchase of USD 2.526 billion, indicating a renewed strategy in managing foreign currency reserves. The RBI's recent activity reflects its efforts to stabilize the Indian rupee and manage liquidity in the foreign exchange market.
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The RBI's net purchases may help stabilize the Indian rupee, potentially affecting import costs and inflation rates.
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