- The RBI sold about USD 13 billion from the forex reserves in the spot market to rescue the Rupee from falling further against the US dollar.
- With an aim to stabilize the exchange rates, this is the highest monthly currency market intervention by the RBI so far in FY23.
- Due to these interventions by the central bank, in the last five months, the forex reserves have plummeted by nearly USD 21 billion and currently stand at USD 533.1 billion.
- A spot market also referred to as a "liquid market" or "cash market", is a type of financial market where financial instruments such as commodities, currencies, and securities are exchanged for instantaneous delivery.
Question:
Q.1 To stabilize the exchange rates, in August 2022, the RBI sold _______ in the spot market.a. USD 10 billion
b. USD 11 billion
c. USD 12 billion
d. USD 13 billion
