Reserve Bank of India (RBI) decreased its forwards book for the third consecutive month. This reduction impacted liquidity. To counter this, RBI conducted large open market operations (OMOs) in May. The net short dollar position in the forward book was $45 billion at the end of May. RBI had executed OMOs worth ₹1.25 lakh crore during May to manage liquidity.
Originally published by The Economic Times https://economictimes.indiatimes.com/markets