RBI Net-Sold Record $53.13 Billion in FY26; Highest Net Dollar Sale in a Financial Year

The Reserve Bank of India recorded net dollar sales of $53.13 billion in the spot foreign exchange market during FY26, the highest on record for a financial year, according to data released in its monthly bulletin. 

In FY25, the RBI reported net dollar sales of $34.51 billion. During FY26, the central bank purchased around $142 billion and sold nearly $195 billion in the spot market. 

Rupee Remained Under Pressure 

The rupee weakened 9.9% during the financial year amid continued foreign portfolio investor outflows, rising crude oil prices and global market uncertainty. 

RBI data showed the central bank remained a net seller of dollars for most of FY26. October saw the highest monthly net dollar sale at $11.88 billion, followed by December at $10.02 billion. 

The RBI turned a net buyer in January and February before returning to net sales in March. 

March Intervention Data 

In March 2026, the RBI sold a net $9.76 billion in the spot market. During the month, it purchased $19.89 billion and sold $29.64 billion. 

The central bank had recorded a net purchase of $7.41 billion in February. 

Market participants said the RBI continued supplying dollars in the market to manage volatility in the rupee amid pressure from overseas flows and global developments. 

Forward Market Positions Increase 

The RBI’s outstanding net short dollar position in the forward market rose to $103.06 billion at the end of March 2026, compared with $77.67 billion a month earlier. 

Of the total forward positions, $14.46 billion was in one-month contracts, while $52.80 billion was linked to contracts maturing after more than one year. 

Participants in the foreign exchange market said the RBI used buy-sell swaps and forward contracts during the year to manage intervention requirements while limiting pressure on domestic banking liquidity. 

REER Declines 

The rupee’s Real Effective Exchange Rate (REER) declined to 88.06 at the end of April from 89.23 in March, according to RBI data. 

Read More: India Seeks to Cut Reliance on $50 Billion Petrochem Imports with Local Manufacturing Push! 

Conclusion  

RBI data showed sustained intervention in the currency market during FY26, with record net dollar sales and higher forward positions recorded by the end of March. 

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