To reduce currency volatility, RBI sells $33.42 billion from April to September of FY23

In order to protect the rupee from excessive volatility, the Reserve Bank of India (RBI) net sold $33.42 billion on the foreign exchange market in the first half of the current fiscal year.

Without taking into account any pre-established target level or band, the Central Bank closely monitors the foreign exchange markets and only intervenes when necessary to prevent undue volatility in the exchange rate and preserve orderly market conditions.

In a response to a question from the Lok Sabha, Finance Minister Nirmala Sitharaman stated, “The RBI’s operations during the financial year have resulted in net sales of $33.42 billion till September 2022 (settlement basis).” On October 20, 2022, the Indian Rupee (INR) reached a record high against the US dollar, reaching 83.20. The rupee’s value is decided by the market.

This news is written by Ms. Pujari Dharani, Research Assistant, All India Legal Forum.