ANI The RBI's foreign exchange reserves peaked at $785 billion in early September.
Synopsis The Reserve Bank of India recorded a net purchase of $43.26 billion in August's foreign exchange market.
This was done to manage significant dollar inflows from the FCNR(B) scheme and overseas borrowings.
Despite the net purchase, foreign exchange reserves did not increase due to large forex sell/buy swaps.
By August 31, measures attracted over $127 billion, aiding the RBI's operations.
By Rozebud Gonsalves, ET Bureau Last Updated: Oct 24, 2026, 08:30:00 AM IST Follow us Mumbai: The Reserve Bank of India (RBI) made a record net purchase of $43.26 billion in the spot foreign exchange market in August as it absorbed dollars amid inflows from the FCNR(B) scheme.
However, these purchases did not translate into an equivalent increase in foreign exchange reserves, as the central bank simultaneously undertook large foreign exchange sell/buy swaps.ADVERTISEMENT The transactions pushed the RBI's net forward dollar sales position to a record $200.06 billion at the end of August, up from $136.77 billion a month earlier.
Banks brought in dollars under these schemes and swapped them with the central bank, allowing the RBI to absorb the inflows while managing their impact on the rupee.
