Reserve Bank of India net sells $1.9 billion in November, shows data

The Reserve Bank of India (RBI) sold a net of $1.9 billion in the domestic foreign exchange spot market in November, according to the central bank's monthly bulletin. The central bank bought $34.98 billion, while it sold $36.91 billion in November.

The headline foreign exchange reserves, excluding the forward book, stood at $604 billion as of the end of November. These reserves notably expanded by approximately $61 billion in 2023. As of December 30, 2022, India's foreign exchange reserves amounted to $562.8 billion.

The RBI had recorded a net sale of $310 million in the spot market in October. The central bank had become a net seller of the US dollar for the first time in the current financial year in August.

The rupee depreciated by 0.17 per cent in November. The RBI's net outstanding forward sales by the end of November stood at $11.9 billion, against $14.6 billion in October.

In the current financial year, the rupee has depreciated by 1.14 per cent so far. It fell 7.8 per cent in the previous financial year (FY23). The local currency had appreciated by 0.16 per cent in the first six months of the calendar year 2023.

The central bank has maintained that it intervenes in the foreign exchange market to curb volatility and that it does not target any particular level of the rupee.