# currency intervention: A currency strategy that’s drawing more hot money to India - The Economic Times

> The Reserve Bank of India has shifted part of its currency intervention to the forwards market, with its outstanding forwards book growing to $28.3 billion by November. Forward premiums have risen to their highest in more than four years, which is attracting more foreign inflows.

- Date: 2021-02-12 · published 2021-02-12T12:00:00.000Z
- Category: policy · region India · magnitude low
- Page: https://feedsoft.ai/events/48922-currency-intervention-a-currency-strategy-that-s-drawing-more-hot-money-to
- Commodities: [Indian Rupee (INR per USD)](https://feedsoft.ai/c/USDINR.md)

## Why it matters

The RBI's intervention is adding liquidity and foreign inflows that complicate monetary policy and keep the rupee's exchange-rate path uncertain. This matters for Indian importers' currency costs but has no direct commodity price effect.

## Sources

- m.economictimes.com: https://m.economictimes.com/markets/forex/a-currency-strategy-thats-drawing-more-hot-money-to-india/articleshow/80873323.cms

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