RBI says not buying foreign exchange in market to increase reserves

The Reserve Bank of India (RBI) is currently not buying dollars from the forex market to increase its foreign exchange reserves.

"We are not, in a sense, targeting an exchange rate and, therefore, we are not going into the market and buying reserves at this point to increase the foreign exchange reserves," RBI Governor Raghuram Rajan said in a post-policy press conference.

"We have not done that and the increase in reserves thus far have come from those windows," Rajan said referring to the two concessional forex swap facilities opened by the central bank during the rupee crisis.

The central bank on Wednesday gave a reprieve to industry and households by keeping the repo rate unchanged at 7.75 per cent despite high inflationary pressures in the economy.