RBI cuts short forex derivative book to $65.2 billion

Under Governor Sanjay Malhotra, the Reserve Bank of India has decreased its short dollar positions in the derivatives market for the third consecutive month, reaching $65.2 billion in May. This strategic shift involves extending the maturity of forward contracts, primarily to the three-month to one-year range. Despite the short dollar book, forex reserves have rebounded to nearly $700 billion.