GK and monthly revision

Rupee's defence takes RBI dollar shorts to a record high

In May 2023, the Reserve Bank of India's net short forward position in the currency market reached a record $106.6 billion, reflecting extensive interventions to protect the rupee amid global uncertainties. This surge indicates the RBI's proactive measures to stabilize the currency, which has since shown signs of recovery due to capital inflows and policy strategies. The decision ahead for the RBI involves either reducing its forward position or enhancing its reserves, which is crucial for economic stability.