RBI net sells $21.7 billion in H1FY26, against $85.11 billion in H1FY25

The Reserve Bank of India net sold $21.7 billion in the first half of the current financial year, against net sale of $85.11 billion during the same period in the previous financial year. It net sold $7.9 billion in September against $7.6 billion in August.

 

The central bank had net sold the highest amount of dollars in the financial year 2024-25 after the global financial crisis in the financial year 2008-09. The central bank net sold $34.5 billion in FY25, highest since net sale of $34.9 billion in the financial year 2008-09.

 

During the current financial year, the RBI was a net buyer of the greenback only in May, while it remained a net seller in the other five months. During the previous financial year, the central bank was a net seller of the foreign currency in all the six months.

 

 

The RBI’s net short dollar forward positions increased by $6 billion in September, marking the first rise in six months. The total dollar short position stood at $59 billion by the end of September against $53 billion at the end of August.

 

As of October 2025, the Real Effective Exchange Rate (REER) of the Indian Rupee remained largely unchanged at 97.47, against 97.4 in September.  

 

The REER was at 98.8 in August. In May, REER had increased after five consecutive months of moderation since December 2024. Prior to the decline, the REER had climbed steadily from 103.66 in January 2024 to a peak of 108.14 in November.

 

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, potentially making Indian exports less competitive in global markets.