RBI scaled up foreign exchange market operations in October 2018

After subdued activity in September, the Reserve Bank of India (RBI) substantially scaled up its foreign exchange market operations in October 2018. It sold greenback net $7.2 billion in October, up from a mere $31 million in September, according to the RBI’s monthly bulletin. 

The RBI has been infusing dollars to stem excess volatility in the foreign exchange market. 

The cumulative sales (net) in April-October 2018 stood at $25.86 billion, according to the RBI data. The RBI had bought $33.68 billion in the previous financial year 2017-18 (FY18). 

The RBI has been infusing dollars to stem excess volatility in the foreign exchange market. 

Rs 100 bn infusion in market

The RBI will infuse Rs 100 billion into the market through open market operations (OMOs) on Thursday.

Based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs, the RBI has decided to purchase government securities under OMOs for an aggregate amount of Rs 100 billion on December 13, the RBI said in a statement on Tuesday.