In the fiscal year 2024–25, the Reserve Bank of India (RBI) engaged in foreign exchange transactions totaling approximately $400 billion, culminating in a net sale of $34.51 billion. This marks the second-largest annual net sale by the RBI, surpassed only by the $34.92 billion sold during the 2008–09 global financial crisis .
The RBI’s interventions aimed to stabilize the Indian rupee amid global economic uncertainties, including fluctuating capital flows and currency volatility. Notably, in March 2025, the central bank made a net purchase of $14.36 billion in the spot forex market, buying $41.52 billion and selling $27.16 billion .
These substantial forex operations impacted domestic liquidity, prompting the RBI to infuse funds into the banking system. In February 2025, the RBI conducted a $10 billion three-year dollar/rupee swap auction to address liquidity shortages, following a previous six-month swap that infused $5.1 billion .
The RBI’s active management of forex reserves and liquidity underscores its commitment to maintaining financial stability in the face of global economic challenges.
