For first time in FY19,RBI becomes net buyer of dollars in Dec
Between April and November 2018, the central bank had net sold $26.51 billion in the spot market.
The Reserve bank of India (RBI) has turned net buyer of dollars in December,first time in the current fiscal year,as it purchased $607 million of the greenback on a net basis from the spot market,according to the latest data.
The central bank bought $837 million and sold $230 million in the spot market during the reporting month.
As against this,in December 2017,RBI was a net buyer of $5.647 billion,after it bought $6.008 billion from the market and sold $361 million.
Between April and November 2018,the central bank had net sold $ 26.51 billion in the spot market against net purchase of $18.017 billion a year ago.
In FY18, the apex bank had net purchased $33.689 billion from the spot market,taking its total dollar purchase to $52.068 billion,and sold only $18.379 billion,this helped the country for the first time scale a life-time peak of $426.028 billion for the week of April 13,2018 in forex reserves.
But since then, the forex kitty has been fluctuating and mostly sliding.
The forex reserves stood at $398.122 billion for the fortnight ended February 8, 2019 and has reportedly crossed the $400-billion-mark last week.
In FY17, the RBI had bought $12.351 billion on a net basis.
In the forward dollar market, the outstanding net forward sales at the end of December 2018 was $2.426 billion, compared to a sale of $1.924 billion in November, show the RBI data.