RBI’s Record $77.5 Billion Short Positions: Impact on Rupee Liquidity and Forex Reserves The Reserve Bank of India (RBI) currently holds a record $77.5 billion in net short dollar positions, which could influence rupee liquidity and foreign exchange reserves. To prevent market disruptions, the RBI may need to roll over these positions, ensuring stability in the financial system. Managing these forward contracts is critical, as any sudden unwinding could impact India's forex reserves, which currently stand at $640 billion, down from a peak of $704 billion in September 2024. RBI’s Dollar Short Positions at Record High As of January 31, 2025, the RBI's net short positions in the dollar forward book reached an all-time high. The central bank holds $30.6 billion in positions with maturities ranging from three months to one year. In February, the RBI conducted two major dollar-rupee.. if you want to know more click 👇 below the link
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