Data presented in Parliament reveals that the central bank sold US dollars (USD) from its forex reserves worth ₹1.28 lakh crore ($15.15 billion) in December 2024 to curb excessive fluctuations.
This followed net USD sales of ₹1.70 lakh crore ($20.23 billion) in November and ₹77,969 crore ($9.27 billion) in October.
However, in September, RBI made net purchases of USD worth ₹80,549 crore ($9.63 billion) to stabilise the rupee.
The Finance Ministry clarified that the rupee’s value is determined by market forces, without any fixed target or band. While depreciation enhances export competitiveness, it also raises import costs.The overall impact on domestic prices depends on how global commodity price changes are passed through to the Indian market.
Despite recent depreciation, the Finance Ministry said that it does not pose a threat to India’s long-term economic stability. Industries dependent on imported inputs may face cost pressures, but multiple factors influence trade beyond exchange rate movements.
The RBI monitors global developments, including monetary policy actions of major central banks, economic data releases, OPEC+ decisions, and geopolitical events. It intervenes only to curb excessive volatility and ensure an orderly forex market.
First Published: Mar 11, 2025 4:12 pm IS
