RBI’s forward dollar book surges to record $137 billion: Here’s what is driving the rise
CNBC-TV18 53 min ago·1 Sept 2026, 7:37 am
The Reserve Bank of India has built a record $137 billion forward dollar book, a significant increase from the previous month. This surge is primarily driven by the central bank's Foreign Currency Non-Resident (Bank) (FCNR(B)) swap scheme. In this program, the RBI issues rupees to banks in exchange for foreign currency, effectively locking in these dollars for a period of three to five years.
This accumulation matters because it signals the RBI's strategy to manage the rupee's volatility. By holding these dollars, the central bank aims to provide stability to the foreign exchange market and prevent sharp swings in the currency's value. The long-term nature of these swaps means the impact will be a key factor to monitor over the next few years.
Investors should watch for the RBI's future communication regarding the maturity of these contracts. The central bank's approach to unwinding this large position will be critical in determining the rupee's future trajectory and the overall stability of the financial system.
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