Money & Banking

RBI turns net purchaser of US dollar in May

PTI Mumbai | Updated on July 13, 2020 Published on July 13, 2020

Yields on commercial papers issued by NBFCs/HFCs that had shot up post the IL&FS fiasco in late 2018, have also fallen sharply in the past few months   -  REUTERS

After being net seller of the US currency in the first month of this fiscal, the Reserve Bank of India (RBI) turned net purchaser in May as it bought $4.363 billion of the greenback on net basis, according to RBI data.

During the month, the RBI bought $4.663 billion from the spot market while sold $300 million.

In April, the central bank had sold $1.142 billion US dollar on a net basis.

The central bank in May 2019 had bought $2.538 billion of the greenback on a net basis. It had purchased $5.118 billion and sold $2.580 billion in the spot market in May 2019.

In FY20, the central bank was net purchaser of the US dollar at $45.097 billion. It had bought $72.205 billion while sold $27.108 billion in the spot market.

In the forward dollar market, the outstanding net sales at the end of May stood at $1.958 billion, compared to a sale of $1.739 billion in April, the data showed.

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Published on July 13, 2020
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