MUMBAI: RBI sold $20 billion from its forex reserves to stabilise the rupee in Nov, data released by the central bank on Friday showed.
Even as market participants try to gauge the level at which RBI would decide to hold back from depleting its reserves and look at other strategies, foreign brokerage Nomura sees headroom for another $138-billion worth sales.
On RBI’s forex intervention, Nomura notes that the central bank has net sold approximately $89.4 billion, including spot and forward transactions, since Oct 2024. Despite this, the research finds that India’s forex reserves remain adequate.
As of Jan 3, 2025, the RBI’s forex reserve adequacy ratio stood at about 236%. Although this represents a decline from the peak of 266% in Sept 2024, Nomura asserts that India’s reserve adequacy remains strong.
