# 'RBI now has a problem of plenty' - Rediff.com

> The RBI's foreign exchange reserves rose above $400 billion, and it held a net forward dollar purchase position of about $31 billion. The central bank said it is building reserves while avoiding outright dollar purchases that would expand rupee liquidity.

- Date: 2017-12-05 · published 2017-12-05T12:00:00.000Z
- Category: policy · region India · magnitude low
- Page: https://feedsoft.ai/events/67770-rbi-now-has-a-problem-of-plenty-rediff-com
- Commodities: [Indian Rupee (INR per USD)](https://feedsoft.ai/c/USDINR.md)

## Why it matters

Large reserve-building and forward positions help the RBI manage rupee volatility, which keeps import costs for dollar-priced feed steadier.

## Read by commodity

- USDINR: neutral

## Sources

- rediff.com: https://www.rediff.com/business/report/rbi-now-has-a-problem-of-plenty/20171205.htm?print=true

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