RBI's net forward book shrinks $34.94 bn in first 3 months of FY23

The multi-pronged defence of the rupee is behind the sharp fall in RBI's long forward position


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Bhaskar Dutta Mumbai
The Reserve Bank of India’s (RBI’s) outstanding net forward purchases of US dollars fell by more than 50 per cent from the last quarter of FY22 to $30.86 billion in the June quarter (Q1). The net forwards position was at $65.79 billion at the end of the last fiscal year.

The purchases fell by $18.33 billion in June as the central bank intervened in both the forwards and the spot market in order to protect the rupee from excessive depreciation in the face of a widening trade deficit.

Data in the RBI’s August 2022 Bulletin show that the bank’s net

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First Published: Aug 20 2022 | 1:03 PM IST

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