For first time in FY19,RBI becomes net buyer of dollars in Dec

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.

Source:Financial Express

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