# RBI shifts to NDFs as preferred forex reserves intervention option | Banking - Business Standard

> The Reserve Bank of India is using non-deliverable forwards more than spot market operations to limit rupee volatility, according to sources. This approach draws less on forex reserves than spot dollar sales.

- Date: 2024-05-24 · published 2024-05-24T12:00:00.000Z
- Category: policy · region India · magnitude low
- Page: https://feedsoft.ai/events/30565-rbi-shifts-to-ndfs-as-preferred-forex-reserves-intervention-option-banking
- Commodities: [Indian Rupee (INR per USD)](https://feedsoft.ai/c/USDINR.md)

## Why it matters

A central bank shift toward NDF intervention preserves reserves and signals a more managed currency, which can reduce import-cost shocks for feed buyers. The direct price impact on grains and feed is small.

## Read by commodity

- USDINR: neutral

## Sources

- business-standard.com: https://www.business-standard.com/industry/banking/rbi-shifts-to-ndfs-as-preferred-forex-reserves-intervention-option-124052400611_1.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.