RBI dollar purchases hit $7.4bn in Feb 2026 bulletin

What the RBI bulletin revealed

The Reserve Bank of India (RBI) net purchased $1.409 billion from the spot foreign exchange market in February 2026, according to the central bank’s monthly bulletin released on Thursday. On a gross basis, the RBI bought $11.403 billion and sold $13.994 billion during the month. The data indicates February was the second consecutive month of net foreign currency purchases by the RBI. Before this two-month buying streak, the RBI had reported net sales for seven consecutive months. The bulletin data is closely tracked because it offers a window into how the central bank is managing rupee volatility and foreign exchange liquidity.

February spot market operations in detail

The net purchase figure of $1.409 billion is derived from the difference between gross purchases and gross sales in the spot market. The RBI’s gross purchases at $11.403 billion suggest active absorption of dollar inflows during the month. At the same time, gross sales of $13.994 billion show the RBI also supplied dollars when required to smooth market conditions. The reported intervention was described in the Mumbai datelined copy as a ramp-up in dollar buying during February. The same report also noted that the RBI’s activity injected Rs 66,881 crore into the system.

A second straight month of net buying

The bulletin shows that the RBI was also a net buyer in January 2026, when it bought $1.526 billion. The shift matters because it interrupts a long phase of net selling, when the RBI was reportedly supporting the rupee through spot market sales. The February numbers, in particular, point to a more decisive return to reserve accumulation compared with January. The PTI-based copy describes February as an opportunity for reserve rebuilding.

How the earlier run of net sales looked

The RBI bulletin data also lists a sequence of net sales before January’s net buying. The RBI net sold $10.020 billion in December, $1.710 billion in November, $11.877 billion in October, $1.910 billion in September, $1.695 billion in August, $1.540 billion in July, and $1.661 billion in June.

What changed in forwards and futures

Despite heavy spot purchases, the report noted that net forward sales stood at $17.7 billion, signalling continued reliance on forward markets. In the futures segment, the RBI was reported to have stayed neutral, with zero net intervention. It also trimmed its outstanding net sales position to $1.522 billion (reported as $122 million). These details are important because they show how the RBI’s broader intervention stance can differ across spot, forwards, and futures.

Rupee backdrop and the February timeline

The Mumbai datelined report linked the February buying to rupee stability following the US–India trade deal announcement on Feb 6. It said this stability likely improved sentiment and triggered capital inflows, giving the RBI space to accumulate reserves without pushing the currency higher. The same report also said that a significant part of reserves were depleted in March, when the rupee came under pressure after the US-Iran conflict began on Feb 28. The bulletin-based description places February’s activity in the context of shifting global and regional risk conditions.

Comparison with last year and FY25 pattern

The report described the February 2026 stance as a reversal from February 2025, when the RBI sold $1.6 billion to support the rupee. It also contrasted February’s buying with FY25, when the RBI was described as a consistent net seller, averaging $1.9 billion of net sales per month. This comparison underscores that the RBI’s intervention posture can flip depending on the balance of inflows, volatility, and external pressures.

What remittance outflows showed in February

The report said outward remittances softened in February, falling 12.8% month-on-month to $1.3 billion. However, it added that outflows were still 19% higher than a year earlier and 5% below the FY25 monthly average of $1.4 billion. Travel continued to dominate outward remittances at $1.3 billion, accounting for 55.9% of outflows. Travel outflows were down 21% sequentially, but were up 19.8% year-on-year, and remained below the FY25 average, according to the report.

Key figures at a glance

Market impact and why investors track this

The spot intervention numbers matter for currency markets because large net purchases can indicate the RBI is absorbing inflows and leaning against excessive rupee appreciation. For bond and money markets, the reported Rs 66,881 crore liquidity injection is relevant because it affects system liquidity conditions. The split between spot purchases and large net forward sales also matters, as it signals that the RBI’s overall hedge and liquidity management extends beyond the spot market. For equity investors, the data is not a direct earnings driver, but it helps frame macro conditions such as rupee stability, imported inflation risk, and foreign portfolio flows.

Analysis: what the February shift signals

The February data points to a clear change in the near-term pattern from a long phase of net spot selling to net buying in two consecutive months. The report’s reference to rupee stability after the Feb 6 trade announcement provides one explanation for why the RBI had room to buy dollars. At the same time, the continued presence of sizable net forward sales suggests the RBI’s broader foreign exchange position is being managed across instruments rather than through spot alone. The bulletin figures also highlight that intervention intensity can change quickly, with February’s net buying far larger than January’s.

Conclusion

The RBI’s February bulletin data shows a $1.409 billion net purchase in the spot market, with $11.403 billion of gross buying and $13.994 billion of gross selling. It marks the second straight month of net purchases after a seven-month stretch of net sales, while forward positions remained significant. Investors will watch subsequent bulletin updates for how the RBI’s spot and forward stance evolves alongside rupee conditions and external developments.