RBI Net Sells $21.7 Billion in H1 of FY26, Down From $85.11 Billion Sold in H1FY25

India’s central bank reported net dollar sales of $21.7 billion in the first half of the current financial year, significantly lower than the $85.11 billion sold during the same period last year.  

The Reserve Bank of India remained a net seller through most months, except May, with sales of $7.9 billion in September and $7.6 billion in August. In FY25, the RBI’s total net sales stood at $34.5 billion, the highest since $34.9 billion recorded in FY2008–09. 

Forward Positions and REER Trend 

The RBI’s net short dollar forward position increased by $6 billion in September, marking the first rise in 6 months and taking the total to $59 billion, up from $53 billion in August. The Real Effective Exchange Rate (REER) remained stable at 97.47 in October compared with 97.4 in September, following earlier fluctuations that saw the index reach 98.8 in August after a period of moderation since December 2024. 

Exchange Rate Movements and Historical Context 

Earlier in the financial year, the REER had moved from 103.66 in January 2024 to 108.14 in November before declining for five consecutive months. The REER, which adjusts the nominal effective exchange rate for inflation differences, provides insight into the rupee’s relative strength, with values above 100 indicating appreciation. 

Read More: Indian Bonds Rise on Hints of Policy Easing from RBI! 

Conclusion 

The RBI’s foreign exchange activity in H1FY26 highlights steady intervention and currency management amid shifting market conditions. Forward positions, REER levels, and historical patterns reflect the bank’s ongoing efforts to balance rupee stability with broader financial dynamics. 

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