Reserve Bank of India turns Net Buyer of dollars in April

June 17, 2022
Current Context: According to the latest data, the RBI purchased $1.96 billion in April.
Reserve Bank of India turns Net Buyer of dollars in April
  • Earlier in March the RBI sold $20 billion in the foreign exchange market.
  • Since the war broke out in Europe in late February, the Central bank has been aggressively intervening in the foreign exchange market.
  • Apart from that investors are also rushing for safe-haven assets as a result, the value of emerging market currencies increased.
  • On other hand, the rupee has depreciated 4.8 percent against the dollar in 2022 as it traded at 78.08 against the dollar which was an all-time low.
  • During fiscal 2022, the RBI had net purchased $17.312 billion. It had bought $113.991 billion and sold $96.679 billion in the spot market in FY 2021-2022.
  • Apart from that, it has also been estimated that global economic conditions continue to deteriorate as commodity prices increases and the volatility of the financial market.

Question:

Q.1 According to RBI data, what amount of dollars have been purchased in the month of April?
a. $2.2 bn
b. $3.2 bn
c. $1.96 bn
d. $4.5 bn

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