RBI sold $14.9 billion in forex market during Jan-May 2026 to curb rupee volatility
The Finance Ministry also updated Parliament on loan recoveries, wilful defaulters, SWAMIH housing, gold loan NPAs and Kisan Credit Cards
During the first five months of 2026, the Reserve Bank of India (RBI) engaged in foreign exchange market sales amounting to approximately USD 14.9 billion, as reported to Parliament. The Indian Rupee (INR) is a market-determined currency, with no specific target or level set by the RBI, according to Finance Minister Pankaj Chaudhary.
The central bank continuously monitors the forex market and steps in when there is significant volatility. Chaudhary mentioned that the RBI's foreign exchange intervention during this period was a net sale of USD 14.9 billion. Several factors contribute to fluctuations in foreign exchange reserves, such as RBI purchases and sales, income from FER deployment, central government aid receipts, and revaluation of assets.
The RBI has implemented several measures to attract forex inflows, including concessional swap facilities for FCNR(B) deposits, External Commercial Borrowings (ECB), and Overseas Foreign Currency Borrowings (OFCB), all announced on June 5, 2026.
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