RBI Comforts Markets As Reserves Hold Near Record, Govt Clears Overdraft With Central Bank

Reserves Ease, But Remain Strong

RBI’s latest weekly statistical supplement indicates forex reserves remain just under the psychologically key 690‑billion‑dollar mark, despite recent volatility in global rates, oil prices and safe‑haven flows. The marginal 1.87‑billion‑dollar dip versus the previous week is largely attributed to valuation changes in foreign currency assets and gold, alongside calibrated intervention to smooth rupee moves. Even after consecutive weekly declines, reserves continue to offer import cover of several months and a substantial buffer against sudden capital outflows, echoing earlier RBI commentary on the external sector’s “resilience”.​

 

On the fiscal side, the central bank disclosed that the central government had zero outstanding loans under the Ways and Means Advances (WMA) facility or overdrafts as of the same week. This suggests cash‑management has been comfortable enough to avoid short‑term reliance on the RBI window, even as gross borrowing and spending needs stay elevated in the run‑up to year‑end.​

 

Key Highlights

Sources: RBI weekly statistical supplement, Deccan Herald, earlier RBI and governor briefings on reserves.​