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Chart: RBI Sells $7.3B in Jan ‘12
The RBI had sold another $7.3 billion in Jan 2012, taking the FY 2011-12 (Apr to Mar) cumulative figure to net sales of $19.8B. On a cumulative basis, this is substantial but nothing compared to the...
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Macro: Money Supply Growth Slows, Dollar Rises
A few macro charts for you: Broad and Narrow Money Supply are slowing M0 growth (reserve money) would fall as bank reserve requirements have fallen 1.25% this year (nearly 80,000 cr. less will be...
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Rupee Nears 53 a Dollar
The Indian rupee has started sliding again, going up to nearly Rs. 53 a dollar (RBI Reference rate). This is the highest the dollar has been since 4 Jan, and it looks like we’ll go break the 2012 high...
View ArticleDollar Above 55, RBI Needs To Open Up
The USD-INR ratio has reached Voldemort levels, meaning you don’t talk about it anymore. While the RBI ref rate is still 54.88, the trading in the spot market took the dollar up to 55 and beyond....
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RBI Intervention Is Not Working For The Rupee
The Reserve Bank of India sold just 275 million dollars in April, even as the Dollar Rupee exchange rate rose from 51.1 to 52.5. Data from the RBI Bulletin yesterday shows traded amounts by the RBI in...
View ArticleRBI Dictates How Oil Companies Should Buy Dollars!
RBI has asked oil companies to buy half their dollar demand from one public sector bank of their choice, says Moneycontrol. RBI feels that oil firms seeking a single quote for their dollar requirement,...
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Chart: The Rupee Goes Beyond Rs. 56 a Dollar
The USD-INR spot rate has just crossed a barrier – Rs. 56 to a dollar. This is the highest the dollar has been since July 2012 and just Rs. 1 short of the all time high. (Click for a larger picture) A...
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The Three Distinct Phases of India’s Forex Reserves
India’s foreign exchange reserves have been through wild rides recently. But if you look at the reserves since 2001, here’s where we went. There are three distinct phases. Phase 1: 2001 to 2008 India...
View ArticleWhat Are Forex Reserves?
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Forex Reserves Cross $300 Bn Again, After Two Years
India’s Forex Reserves have crossed $300 billion for the first time since December 2011. The tone is familiar. RBI had, till 2007, employed a policy of building reserves consistently. In spite of...
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RBI Trades the Dollar: Buys More in Sep, and Likely Even More in October –...
RBI returns to buying dollars as they reveal in their November bulletin, with a purchase of $1.4 billion in September. This time, they added about $3 billion in forwards as well. Including forwards,...
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Forex Reserves at the Highest Ever, but RBI Controls Balance Sheet to...
The RBI’s back to buying dollars by the truckload. Forex reserves have been going up substantially. The RBI has over $322 bn of cash reserves, and then another $13 billion from forwards (it may even be...
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RBI Unwinds Forex Exposure As Reserves Hit Record High on RBI Dollar Buying
India’s forex reserves hit a new high at $333 billion for the week ended 13 Feb 2015. This is the highest ever in terms of forex reserves that India’s held. Including known forex forward derivative...
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RBI Buys $12 billion in January, Returns to Expansionary Balance Sheet?
RBI bought dollars by the truckload in January, it turns out. Over $12 billion was purchased in Jan 2015, which is the largest single month of dollar purchases since January 2008! Even then the rupee...
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