- Wealth PMS
The RBI had sold another $7.3 billion in Jan 2012, taking the FY 2011-12 (Apr to Mar) cumulative figure to net sales of $19.8B.
On a cumulative basis, this is substantial but nothing compared to the amount the RBI bought in earlier years:
More than $78 Billion was bought by the RBI in 07-08, and in 2008-09 as well, we saw a lot of dollar buying (more than $26 bn) along with the selling (about $62 bn). Since then the RBI stopped large scale interventions in the market – some small buys here and there would result in a minor figure. In fact from Dec 2010 to August 2011, the RBI did not trade in the market at all. (if they are to be believed)
So this year isn’t great in numbers, though it’s much higher than the last two years. The difference really is that in 2010 or so, the RBI had sworn to not intervene in the forex market, but it did.