RBI's Forex Sales Hit $34.5 Billion in FY25 Amid Rupee Swings

The Reserve Bank of India (RBI) reported significant activity in the foreign exchange market during FY25. According to the latest data, the central bank's net sales reached $34.5 billion, the highest figure since the 2008-09 global financial crisis. Concurrently, the RBI reduced its forward book for the first time in 7 months, bringing it down to $84.34 billion by the end of March 2025, compared to $88.75 billion in the preceding month.

Rupee Depreciation and RBI’s Aggressive Intervention

During FY25, the Indian rupee underwent a notable depreciation, particularly in the latter half of the year, falling as low as 87.95 per dollar in February 2025. This movement coincided with the US dollar index rising sharply to 108, largely driven by inflationary pressures following President Donald Trump’s return to office and his aggressive trade stance.

In an effort to stabilise the currency and curb undue volatility, the RBI net sold approximately $43 billion in the second half of FY25 alone. November 2024 marked the peak of the intervention, with net sales touching $20 billion. The rupee eventually depreciated by 2.4 per cent during the financial year. Meanwhile, India’s foreign exchange reserves saw a steep decline from $705 billion in late September 2024 to under $625 billion by January 2025.

Adding to the intensity, the RBI reduced its forward book for the first time in seven months, falling to $84.34 billion in March 2025 from $88.75 billion a month prior. Despite these pressures, the rupee rebounded strongly from its February lows, appreciating to 83.75 by early May, aided by improved global sentiment and RBI’s policy actions.

Fiscal Implications and Market Recovery

The central bank’s intervention, particularly the gross sale of around $399 billion in FY25, has not only helped stabilise the rupee but is also expected to yield substantial fiscal benefits. According to experts, the high volume of dollar sales will support a record dividend transfer from the RBI to the government, projected to range between ₹2.5 trillion and ₹3 trillion, significantly higher than the ₹2.1 trillion transferred in FY24.

Interestingly, while the RBI was a net seller in the latter half of FY25, it had been a net buyer in the first half (April–September 2024), acquiring $8.52 billion worth of dollars. The highest net purchase came in March 2025, coinciding with a strong rupee recovery due to renewed capital inflows and stabilising global conditions.

The RBI also deployed buy/sell swap auctions to inject rupee liquidity and smoothen currency fluctuations. These operations, aimed at containing excessive volatility, helped the rupee recoup all its losses for calendar year 2025.

Read More: RBI Slows Liquidity Push After ₹8.57 Lakh Crore Injection; Big Surplus Transfer Expected!

Conclusion

FY25 was marked by pronounced rupee volatility and a series of decisive moves by the Reserve Bank of India in the foreign exchange market. Through aggressive dollar sales, reduced forward exposure, and liquidity-enhancing operations, the RBI successfully navigated a turbulent external environment. 

These measures not only restored currency stability but also paved the way for a historic surplus transfer to the exchequer, reinforcing the central bank’s pivotal role in maintaining macroeconomic equilibrium.
 

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