ENA Economy 2025-05-22 14:03:50 <p><span style="font-size:14px"><strong>New Delhi, May 22 (KNN) </strong>The Reserve Bank of India reported record foreign currency sales of USD 398.71 billion on a gross basis during the 2024-25 financial year, as the central bank intensified efforts to defend the rupee against global market volatility.</span></p> <p><span style="font-size:14px">The sales figure, released in central bank data on Wednesday, represents a significant increase from USD 153.03 billion in 2023-24 and surpasses the previous record of USD 212.57 billion set in 2022-23.</span></p> <p><span style="font-size:14px">Despite substantial purchases of foreign currency during the same period, the RBI recorded net sales of USD 34.51 billion for the twelve months ending March 2025.</span></p> <p><span style="font-size:14px">This marks only the seventh instance in three decades of available data where the central bank sold more foreign currency than it purchased.</span></p> <p><span style="font-size:14px">The net sales figure ranks as the second-highest on record, trailing only the USD 34.92 billion sold during the 2008-09 global financial crisis.</span></p> <p><span style="font-size:14px">The rupee experienced significant pressure during the latter half of 2024-25 following increased speculation about Donald Trump's return to the U.S. presidency.</span></p> <p><span style="font-size:14px">Market interventions by the RBI reached their peak in December 2024, when the central bank sold USD 69.05 billion in foreign currency, representing the highest monthly total in its history.</span></p> <p><span style="font-size:14px">The second half of the financial year proved particularly challenging, with the RBI selling USD 291.03 billion during this period, accounting for 73 percent of total annual gross sales.</span></p> <p><span style="font-size:14px">Market concerns over anticipated protectionist trade policies under the Trump administration contributed to the rupee reaching an all-time low of 87.95 per dollar in early February 2025.</span></p> <p><span style="font-size:14px">The currency defence operations came at considerable cost to India's foreign exchange reserves, which declined by approximately USD 80 billion between late September 2024 and mid-January 2025, falling below USD 625 billion.</span></p> <p><em><strong><span style="font-size:14px">(KNN Bureau)</span></strong></em></p> 42169 https://knnindia.co.in/news/newsdetails/economy/rbi-spent-usd-398-bn-to-defend-rupee-in-fy25 2025-05-22 14:03:50 knnindia.co.in