Reserve Bank of India (RBI) recorded a total net sale of $53.1 billion in FY26, an increase of $12 billion, compared to net sales of $41.1 billion in FY25.
Other measures taken by RBI to prevent Rupee Depreciation
- Liquidity Injections & Swaps: RBI has initiated a $5 billion USD/INR buy/sell swap to boost rupee liquidity and enhance market stability.
- Offshore NDF & Derivative Limits: The central bank is restricting domestic banks from rupee Non-Deliverable Forward (NDF) contracts to decouple from volatile offshore markets.
- It has capped net open forex positions for banks at $100 million to curb speculative trading.
About Currency Depreciation
- Definition: Depreciation of a currency occurs when its value declines relative to foreign currencies in the open market.
- Factors Driving Depreciation of Indian Rupee
- Other: Gold import bill has almost doubled to $72 billion in 2025-26 in two years; Outflow under LRS for foreign travel accounted for $15 billion in FY26, etc.
- Global economic factors: Such as high crude oil prices (past $100 per barrel) due to the Strait of Hormuz crisis, US Federal Reserve interest rate hikes, etc. have led to higher demand for foreign currency, weakening the rupee.
- Capital Outflows: For e.g. total outflows by Foreign Portfolio Investors (FPIs) from the equity market have crossed ₹2 lakh crore in 2026.
