RBI reduces forwards book for 3rd straight month

ET BureauLast Updated: Jul 01, 2025, 06:25:00 AM IST

Synopsis

Reserve Bank of India (RBI) decreased its forwards book for the third consecutive month. This reduction impacted liquidity. To counter this, RBI conducted large open market operations (OMOs) in May. The net short dollar position in the forward book was $45 billion at the end of May. RBI had executed OMOs worth ₹1.25 lakh crore during May to manage liquidity.

RBI reduced its forwards book for the third straight month and countered its impact on liquidity by large open market operations (OMOs) in May, economists said. RBI's total net short dollar position in the forward book stood at $45 billion as of May 31. This comes after the forward book stood at $52.4 billion in April, and a peak of $78 billion in February.

Most of the positions were in the three month to one year segment with forwards of $30 billion, and $10 billion in the 1-3 month segment. RBI had done OMOs for ₹1.25 lakh crore in May.

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