RBI releases weekly foreign exchange turnover data

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Weekly foreign exchange data

Highlights

From 12–16 October 2026, merchant FCY/INR spot purchases rose from 1,575 to 5,877 USD million, while sales increased from 2,326 to 7,777 USD million.
Inter-bank FCY/INR forward sales rose from 9,089 to 24,364, then reached 20,446 USD million, reflecting a notable increase in wholesale market activity.
During the reporting period, inter-bank turnover exceeded merchant turnover, with liquidity management in the banking system driven primarily by FCY/INR spot and forward transactions.

This article was translated from the original. Read the original version by our correspondent here.

Turnover details for 12–16 October

According to Reserve Bank of India press release 2026-2027/1450, the central bank has released daily data on merchant and inter-bank foreign exchange transactions for the period from 12 October 2026 to 16 October 2026. All figures are in USD million and cover FCY/INR and FCY/FCY transactions, including spot, forward, swap, and forward cancellations.

Merchant purchases of FCY/INR spot stood at 1,575 on 12 October, while forward purchases were 2,544; by 16 October, they were recorded at 5,877 and 1,539, respectively. Over the same period, inter-bank FCY/INR spot purchases ranged from 16,180 to 14,212, while FCY/FCY spot purchases fluctuated between 6,016 and 10,579.

Merchant sales of FCY/INR spot stood at 2,326 on 12 October and were recorded at 7,777 on 16 October. Inter-bank sales of FCY/INR forwards rose from 9,089 to 24,364, before reaching 20,446, reflecting a notable change in wholesale market activity during the week.

Market signals and the nature of the data

The released data show that inter-bank turnover remained significantly higher than merchant turnover during the reporting period, particularly in FCY/INR spot and forward transactions. This suggests that liquidity management and hedging activity within the banking system continued to account for a major share of total foreign exchange turnover.

The RBI also said that daily turnover in the inter-bank segment is based on data reported by both counterparties. The figures are provisional, so limited revisions may be made in subsequent compilations.

Our earlier report on the practice of indirect evergreening at Indian banks noted that some banks with weak capital positions may delay the recognition of bad loans by routing funds through related parties, creating the appearance of repayment while concealing the underlying risk. According to the report, such loans may be more prone to default, and their growth increases risks to bank shares and broader financial stability. Regulatory oversight therefore needs to focus on links such as group structures and fund flows.

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