The Reserve Bank of India's net dollar purchases hit a record $43.26 billion in August 2026, more than double July's $18.65 billion, according to the RBI's monthly bulletin as reported by Business Standard on 23 October. Spectate Media has not seen the bulletin. The RBI bought $74.47 billion and sold $31.21 billion during the month.
Why purchases jumped
Dollars raised through the concessional swap facility for FCNR(B) deposits, external commercial borrowings and overseas foreign currency borrowings were routed back to the RBI through the swap window, Business Standard reported. Banks mobilised $52.3 billion by 14 August, and the RBI moved the closure of the facility forward to 31 August from 30 September.
The year so far
The RBI was a net seller in April and May, a net buyer in June, and stepped up purchases in July and August. Cumulative net buying in FY27 reached $47.43 billion by the end of August, from $4.17 billion at the end of July. That nearly offsets the $53.13 billion of net selling across all of FY26. The RBI was a net seller in 10 of the 17 months to August.
The forward book
The RBI's net short dollar position in the forward market reached a record $200.06 billion at the end of August, from $136.77 billion a month earlier, a rise of about $63 billion. Short positions maturing beyond one year nearly doubled to $176.57 billion from $91.54 billion, and those maturing within a year rose to $55.15 billion from $47.66 billion. After netting out long positions, the short position maturing within a year fell to about $23.5 billion from $45.2 billion. The article does not say how much of the increase is linked to the swap window. The rupee's real effective exchange rate was 89.35 in September, up from 88.72 in August.
Key numbers
- Net purchases, August: $43.26 billion (Record; July was $18.65 billion)
- Net forward short: $200.06 billion (Record; up from $136.77 billion)
- FY27 net buying so far: $47.43 billion (Against $53.13 billion net sold in FY26)
- Rupee REER, September: 89.35 (From 88.72 in August)
What boards and CFOs should note
Three points stand out. First, August's record buying came largely through a window that has now closed, so it is a one-month figure, not a trend. Second, most of the forward short position matures beyond a year. Third, the real effective exchange rate remains below 100.
Source: Business Standard, 23 October 2026. This is a summary of a news report, published as general information. It is not legal, tax or investment advice.
This article is journalism and commentary. It is not a recommendation to buy or sell any security, and it is not professional advice. Read the full disclaimer.
