RBI net sells $9.7 billion in November, short dollar position rises

RBI's net dollar sales moderated in November, even as its outstanding short dollar position in the forward market rose further, reflecting continued intervention to manage rupee volatility

The Reserve Bank of India (RBI) net sold $9.7 billion in November, compared to a net sale of $11.8 billion in October, according to the central bank’s monthly bulletin.

 

How much did the RBI buy and sell in the forex market in November? 

The central bank bought $14.3 billion and sold $17.6 billion during the month.

 

What is the RBI’s position in the rupee forward market? 

The outstanding net short dollar position in the rupee forward market rose further to $66.04 billion by the end of November, compared to $63.6 billion at the end of October.

 

Of the $66 billion net short dollar position, $18.8 billion was in one-month contracts, $16.8 billion in one- to three-month tenures, $2.2 billion is set to mature between three months and one year, and the remaining $28 billion was in contracts with a maturity of more than one year.

 

What does the REER indicate about the rupee’s position? 

As of December 2025, the real effective exchange rate (REER) of the Indian rupee stood at 95.30, compared to 97.52 in November 2025.

 

The REER adjusts the nominal effective exchange rate (NEER) to account for inflation differentials between India and its major trading partners. A REER value above 100 indicates an appreciation of the rupee relative to the base year, which can potentially make Indian exports less competitive in global markets.