Indian central bank's FX forward book shrinks to $52.48 billion
MUMBAI: The size of the Indian central bank's FX forward book shrank to $52.48 billion at the end of April, down $11.7 billion from the previous month, according to data released by the central bank on Friday.
The Reserve Bank of India's aggregate short dollar position in FX forwards and futures had climbed to a record high of $88.7 billion in February amid dollar-selling interventions by the central bank to support the rupee which had declined to it all-time low of 87.95 that month.
India central bank bought net $14.36 billion in spot forex market in March, bulletin shows
The aggregate short dollar position had built up over months as the central bank intervened in the FX markets to support the rupee.
The shrinking of the size of the RBI's FX forward book, meanwhile, has coincided with the rupee's recovery which ended at 85.5775 on Friday.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
15 hours ago
- Business Recorder
Trump says Pakistani representatives coming to US next week for trade talks
WASHINGTON: US President Donald Trump said on Friday representatives from Pakistan are coming to the United States next week as the South Asian country seeks to make a deal on tariffs. Pakistan faces a potential 29% tariff on its exports to the United States due to a $3 billion trade surplus with the world's biggest economy, under tariffs announced by Washington last month on countries around the world. Trump said he would have no interest in making a deal with the South Asian country or its neighbour, India, if they were to engage in war with each other. The two nuclear-armed rivals used fighter jets, missiles, drones and artillery in four days of clashes this month, their worst fighting in decades. Pakistan begins talks with US on Trump's reciprocal tariffs, says finance minister's adviser 'As you know, we're very close making a deal with India,' Trump told reporters at Joint Base Andrews after departing Air Force One. Indian Trade Minister Piyush Goyal visited Washington recently to advance trade talks, with both sides aiming to sign an interim agreement by early July. India faces 26% tariffs on shipments to the US. Trump tariffs: US offers Pakistan to buy more cotton Reuters reported last week that India is likely to allow US firms to bid for contracts worth over $50 billion, mainly from federal entities, as it negotiates a trade deal with Washington.
Business Recorder
19 hours ago
- Business Recorder
Industrial raw materials: Proposals for duty cuts to be submitted to PM
ISLAMABAD: Prime Minister's Special Assistant on Industries and Production, Haroon Akhtar Khan will submit proposals for reducing duties on industrial raw materials for the FY 2025–26 budget to Prime Minister Shehbaz Sharif on Monday. The Prime Minister had earlier constituted a Committee on Industry, headed by Haroon Akhtar, to formulate proposals regarding duties and taxes across various sectors. The committee convened on May 24, 2025, to deliberate on different recommendations for tariff and duty reductions. These proposals will be formally submitted to the Prime Minister on June 2, 2025, revealed Faiz Ahmad Chadhar, Chief Executive of the Trade Development Authority of Pakistan (TDAP), during a session of the National Assembly Standing Committee on Commerce. The meeting of the Standing Committee, chaired by Jawed Hanif Khan, addressed several issues related to the Ministry of Commerce. Secretary Commerce, Jawad Paul, led the ministry's delegation. National Tariff Policy: govt approves phased elimination of import duties Dispelling concerns about external influence, Secretary Commerce stated there was no pressure from the International Monetary Fund (IMF) for tariff rationalization. 'Things have progressed significantly since March 2025, and tariffs are being rationalized under the FY 2025–26 budget.' The Commerce Ministry has also been instructed to present a detailed briefing on the National Tariff Policy, and the measures taken to achieve the Prime Minister's $60 billion export target. The Committee discussed reasons for the ban on export and import of gold and gemstones which has irritated those in the business. It was apprised that on May 7, 2025 a ban was imposed abruptly on export of gold including consignments in transit. 'Stakeholders informed the committee that the sudden ban had caused severe disruptions, particularly to consignments already in transit, 'said one of the gold businessmen from Karachi. Secretary Commerce Jawad Paul stated that a committee has been constituted to review the abrupt 60-day ban on the export and import of gold and gemstones. He explained that the ban was implemented on the recommendation of the State Bank of Pakistan (SBP). The committee chaired by the Secretary has already held several meetings to examine the issue thoroughly. It is expected to recommend that the government allow the entry of consignments that were already in transit when the notification was issued. He further suggested that the matter be discussed in more depth at the next meeting, with representatives from the SBP and the Federal Board of Revenue (FBR) in attendance. On the issue of fumigation of export-bound consignments, MNA Sharmila Farqui informed the committee that rice exporters are being harassed by the Directorate General of the Department of Plant Protection (DPP). She alleged that the department was using pest-control methods involving banned Indian-origin pests, and that officials were opening rice consignments, apparently under the orders of the Director General. A representative from the Rice Exporters Association of Pakistan (REAP) acknowledged that conditions had somewhat improved for rice exporters but noted that several issues still frequently hamper exports. In response, DPP Director General Tahir Abbas informed the committee that the government had recently cancelled the licence of a company holding 60% market share for using Indian pests in rice fumigation. He defended the department's strict enforcement of phytosanitary measures, citing a significant reduction in shipment interceptions. Chairman of the Standing Committee, Jawed Hanif Khan, instructed the DG to maintain strict oversight of departmental operations to ensure that exporters are not mistreated by staff. Additionally, the Juice Manufacturers Association requested duty drawbacks on incremental exports in the upcoming budget, claiming such measures could help double export volumes in the coming years. According to official statement, the meeting reviewed the progress of key legislative measures and addressed pressing trade-related matters to enhance Pakistan's commercial landscape. It discussed the previous issue of disruptions in the export of rice. Emphasising the importance of resolving this matter, the committee urged the Department of Plant Protection to enhance its administrative oversight, particularly concerning container inspections and related procedures. The Committee was assured that efforts were actively underway to address these challenges, with a commitment to minimising, if not eliminating, future disruptions in rice exports. The committee also discussed the Suspension of SRO 760. The chair emphasised that the suspension of the SRO was a decision of the Federal Cabinet, and only the Cabinet could reinstate it. However, interim relief for pipeline issues remained a priority, and the Ministry had already made necessary requests for such relief. On discussions regarding granting special relief/ rebate by the government to food exporting companies it was noted that this incremental tax rebate would assist generating additional revenue for the country. The committee decided to forward the matter to the Federal Board of Revenue for further deliberation. The committee reviewed 'The Export Development Fund (Amendment) Bill, 2025', (moved by Muhammad Mobeen Arif, MNA), and 'The Trade Development Authority of Pakistan (Amendment) Bill, 2025', (moved by Usama Ahmed Mela, MNA) in depth and decided to constitute a Sub-Committee for detailed deliberation on the bills after the expiration of the previous Sub-Committee therefore, pending the bills till then. The committee decided to hold a detailed briefing on the Pakistan National Tariff Policy in the next meeting. It was stressed that tax liberalisation should not be extended to finished goods and luxury items, ensuring that the focus remained on sectors that aligned with national economic priorities. The proposal for liberalising raw materials and machinery imports to support industrial growth and to enhance productivity was also discussed in the meeting. The meeting was attended by MNAs, Muhammad Mobeen Arif, Usama Ahmed Mela, Shaista Pervaiz, Dr Mirza Ikhtiar Baig, Muhammad Atif, Tahira Aurangzeb, Khurshid Ahmed Junejo, Kiran Haider, Mir Amir Ali Khan Magsi in person whereas, Asad Alam Niazi, Rana Atif, Muhammad Ali Sarfaraz, Farhan Chishti, MNAs and Sharmila Sahiba Hishaam Faruqui, MNA/ Special Invitee attended the meeting virtually. Senior officers from the Ministry of Commerce, the Ministry of Law and Justice and the Ministry of National Food Security and Research were also present in the meeting. Copyright Business Recorder, 2025
Business Recorder
a day ago
- Business Recorder
Asia gold: India gold demand lags as prices rise, wedding buying cools
Physical gold demand in India was subdued this week, as an uptick in domestic prices and a winding up of wedding season kept buyers at bay, while premiums slipped in top consumer China. This week, Indian dealers were offering a discount of up to $31 an ounce over official domestic prices, inclusive of 6% import and 3% sales levies, down from last week's discount of up to $49. 'The wedding season is wrapping up and the monsoon has kicked in, so jewellers are expecting a seasonal dip in demand. That's why they're holding off on making new purchases,' said a Mumbai-based bullion dealer with a private bank. Domestic gold prices were trading around 94,900 rupees per 10 grams on Friday after hitting a one-month low of 90,890 rupees earlier this month. In China, bullion changed hands at par to a $15 premium an ounce over the global benchmark spot price, compared with premiums of $16-$30 last week. 'Shanghai Gold Exchange drawdowns have eased to the lows of this year while imports in the last few weeks have been exceptionally high, suggesting the Chinese domestic market may be overstocked just now,' said Ross Norman, an independent analyst. Gold falls as dollar strengthens ahead of key US inflation data China's total gold imports via Hong Kong nearly tripled month on month in April, hitting their highest level in more than a year, Hong Kong Census and Statistics Department data showed on Monday. 'Gold bullish bets remain predominant on the SHFE despite lower trading volume,' said Hugo Pascal, a precious metals trader at InProved. In Hong Kong, gold was sold at a premium of $0.30 to $1.30, while in Singapore gold traded between at-par prices and a $2.50 premium. In Japan, bullion was sold at par to a premium of $0.50.
