RBI Deploys Dollar Reserves to Stabilize Rupee Amid Liquidity Pressures

The Reserve Bank of India (RBI) intervened aggressively in forex markets on February 11, 2025, selling dollars to stabilize the rupee, which hovered near its record low of 87.94/USD. State-run banks executed RBI’s dollar sales at 87.24-87.26 levels to curb volatility. Simultaneously, the central bank reported banks’ cash balances at ₹9.13 trillion, reflecting liquidity measures like doubling OMO purchases to ₹40,000 crore. The government’s surplus cash balance with RBI for auctions stood at ₹1.26 trillion, aiding liquidity management amid an eight-week deficit of ₹1.33 trillion. These moves follow RBI’s recent 25 bps rate cut and proactive steps to ease systemic stress.

Sources: Reuters, Business Standard, RBI Press ReleasesThe Reserve Bank of India (RBI) intervened aggressively in forex markets on February 11, 2025, selling dollars to stabilize the rupee, which hovered near its record low of 87.94/USD. State-run banks executed RBI’s dollar sales at 87.24-87.26 levels to curb volatility. Simultaneously, the central bank reported banks’ cash balances at ₹9.13 trillion, reflecting liquidity measures like doubling OMO purchases to ₹40,000 crore. The government’s surplus cash balance with RBI for auctions stood at ₹1.26 trillion, aiding liquidity management amid an eight-week deficit of ₹1.33 trillion. These moves follow RBI’s recent 25 bps rate cut and proactive steps to ease systemic stress.