)
The Reserve Bank of India's (RBI) net dollar purchases from the spot market rose to a near seven-year high in January to $12.14 billion, a level not seen since January 2008, when it was $13.63 billion.
To ensure comfortable liquidity in the system in the financial year's fourth quarter (January-Match), RBI had started making more of dollar purchases from the spot market.
Net dollar purchases were $6.74 bn in December.
In spot market transactions, the settlement happens in two days. So, when dollars are bought from the sport market, the rupee liquidity flows within two days. When the intervention is done through forward contracts, there is no immediate rupee liquidity into the system due to dollar purchases.
Data shows net forward purchases at the end of January were $5.58 bn, compared with $6.85 bn a month before.
The flows into non-resident Indian deposits for the nine months of April-December 2014 were $10.06 bn, down sharply from $35.15 bn in the same period of 2013. NRI deposits were $110.07 bn, up from $98.64 bn a year before.
RBI has been mopping dollars to boost its foreign exchange reserves, so as to tackle external shocks.
These reserves hit an all-time high of $338.08 bn for a consecutive week ending February 27, show data released on Friday.
To ensure comfortable liquidity in the system in the financial year's fourth quarter (January-Match), RBI had started making more of dollar purchases from the spot market.
Net dollar purchases were $6.74 bn in December.
In spot market transactions, the settlement happens in two days. So, when dollars are bought from the sport market, the rupee liquidity flows within two days. When the intervention is done through forward contracts, there is no immediate rupee liquidity into the system due to dollar purchases.
Data shows net forward purchases at the end of January were $5.58 bn, compared with $6.85 bn a month before.
The flows into non-resident Indian deposits for the nine months of April-December 2014 were $10.06 bn, down sharply from $35.15 bn in the same period of 2013. NRI deposits were $110.07 bn, up from $98.64 bn a year before.
RBI has been mopping dollars to boost its foreign exchange reserves, so as to tackle external shocks.
These reserves hit an all-time high of $338.08 bn for a consecutive week ending February 27, show data released on Friday.
