RBI's net short fwd dlr position $49.18 bln Oct-end, most in at least 10 yrs
This story was originally published at 20:53 IST on 29 November 2024
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--RBI's 1-3 month FX fwd position -$21.0 bln Oct-end vs -$3.18 bln month ago
--RBI's upto 1-mo fwd position -$28.18 bln Oct-end vs -$11.40 bln month ago
--RBI's net short fwd position $49.18 bln at Oct-end vs $14.58 bln month ago
NEW DELHI – The Reserve Bank of India's net outstanding short positions in dollar/rupee forward contracts rose by a whopping $34.60 billion to $49.18 billion at the end of October, the highest in at least a decade. The central bank not only rolled over its $11.4 billion worth of short positions in forwards maturing within one month, but also added another $16.78 billion worth of short positions in the segment.
In the maturity segment of one to three months, the RBI added $17.82 billion worth of short positions to its September-end net short position of $3.18 billion. It's position in long-term forwards with maturity greater than one year remained zero.
The net position of the RBI's forward book is the difference between its outstanding gross purchases and gross sales of forward contracts. In October, the rupee fell 0.3% against the dollar due to strength in the dollar index and strong foreign portfolio outflows from domestic markets. However, the RBI actively intervened through dollar sales to prevent a sharp depreciation in the Indian currency, according to dealers.
At the end of October, the central bank's gross long positions in its forwards book were nil for the fifth consecutive month.
| October | Total | Up to 1 month | 1-3 months | 3 months-1 year | >1 year |
| Short positions | 49180 | 28180 | 21000 | 0 | 0 |
| (+34600) | (+16780) | (+17820) | (0) | (0) | |
| Long positions | 0 | 0 | 0 | 0 | 0 |
| (0) | (0) | (0) | (0) | (0) | |
| Net (long-short) | -49180 | -28180 | -21000 | 0 | 0 |
* Net change from the previous month in parentheses. All figures are in $ mln.
End
US$1 = INR 84.48
Reported by Pratiksha
Edited by Saji George Titus
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