RBI buys $7.37 billion in spot forex market in May: RBI Monthly Bulletin

According to information made public on Monday as part of the Reserve Bank of India’s monthly bulletin, the RBI purchased $7.37 billion in foreign exchange on the spot market in May. 

According to the data, the RBI did not sell any dollars during the specified month. The central bank purchased a net amount of $7.70 billion on the spot market in April. 

According to the RBI Monthly Bulletin data, the RBI had a net outstanding forward purchase of $19.27 billion as of the end of May, down from a net purchase of $19.93 billion in April. To reduce currency rate volatility, the central bank makes interventions in the spot and futures markets. 

Meanwhile, the Gross foreign direct investments (FDI) into India moderated to $ 12.2 billion in April-May 2023, from $ 16.5 billion in April-May 2022. Gross FDI had moderated from $ 84.8 billion in FY22 to $ 71.4 billion in FY23.

Source: Media reports