RBI sells $3.34 billion in spot forex in February

Activities in February indicated RBI's efforts to strengthen Indian rupee

The Reserve Bank of India (RBI) sold, net of purchase, $3.34 billion in February in the market, data showed.

In January, RBI’s net sales were $30 million. In the exchange traded futures segment, the central bank’s net sales position was $970 million.

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In January, RBI had bought and sold an equivalent amount, making its net position nil.  The activities in February indicated RBI’s efforts to strengthen the rupee.

Forwards contract maturing within three months to a year was a net short of $5.4 billion.

RBI’s long position, or dollar purchase was at $19.8 billion, and short position, or dollar sales were at $25.21 billion, indicating the central bank’s preparedness to honour Foreign Currency Non-Resident (Bank) or FCNR (B) deposits worth about $27 billion maturing in September.