How much did the RBI sell via state banks on May 22, 2026?

The central bank sold an estimated in the billions through state channels. This specific volume helped the rupee recover from session lows by establishing a firm price floor before retail trading began.

What impact do buy-sell swaps have on the 1-year forward premium?

Coordinated buy-sell swaps caused the 1-year forward premium to slide by 10 basis points. This reduction lowers hedging costs for importers while signaling tight administrative control over future currency pricing expectations effectively.

How large is the RBI net short forward position as of March 2026?

The net short forward position totals $104 billion as of March 2026. This massive figure indicates a strategic preference for managing market expectations rather than depleting immediate foreign exchange reserves through direct sales.

What was the scale of RBI intervention in April 2025 alone?

In April 2025 alone, the RBI sold US$3.6 billion to curb excessive depreciation. This monthly defensive operation highlights the significant scale required to manage the rupee under the current managed floating exchange rate regime.

Why does the RBI prefer swaps over pure spot market interventions?

Swaps inject rupee liquidity without expanding the monetary base like pure spot sales. This approach allows the bank to support the spot market while neutralizing the tightening impact that dollar sales often have on domestic banks.

RBI Forex Strategy: Beyond Simple Spot Sales

Sun, 01 Mar 2026 00:00:00 +0000

The rupee rebounded to 94.6450 from a low of 94.9150 after the RBI likely sold dollars on Wednesday.

Swaps on ForexCFD.top

RBI Forex Strategy: Beyond Simple Spot Sales