# RBI acts in forwards market to protect forex reserves, pulls down premiums

> The RBI took advance delivery of outstanding long-forward dollar positions, causing a sharp drop in dollar/rupee forward premiums. Analysts said the central bank appears intent on keeping headline forex reserves from falling much below $600 billion, which had dropped to $590.59 billion.

- Date: 2022-06-24 · published 2022-06-24T12:00:00.000Z
- Category: policy · region India · magnitude low
- Page: https://feedsoft.ai/events/41218-rbi-acts-in-forwards-market-to-protect-forex-reserves-pulls-down-premiums
- Commodities: [Indian Rupee (INR per USD)](https://feedsoft.ai/c/USDINR.md)

## Why it matters

Lower forward premiums reduce the carry for rupee-denominated holders and can accelerate rupee depreciation, raising India's import costs. The policy signals RBI reserve defense rather than a direct move in feed commodities.

## Read by commodity

- USDINR: bullish ▲

## Sources

- business-standard.com: https://www.business-standard.com/article/finance/rbi-acts-in-forwards-market-to-protect-forex-reserves-pulls-down-premiums-122062401111_1.html

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