What changed
RBI published the foreign exchange turnover data for the week May 4-8, 2026, covering merchant and inter-bank transactions in FCY/INR and FCY/FCY segments. The data includes spot, forward, swap, and cancellation of forwards for both purchases and sales. This is a routine weekly release, not a policy change.
What it means for you
Banks can use this data to gauge daily FX market liquidity and activity levels. The high inter-bank volumes, especially in FCY/INR spot and forward, indicate robust market depth. Merchant transaction patterns help lenders assess corporate hedging and trade flow trends.
What you must do
- Review the daily merchant purchase/sale figures to align your treasury's FX pricing and risk limits.
- Compare inter-bank volumes with your own bank's activity to identify market share or liquidity gaps.
- Use the data for internal reporting on FX market trends and for regulatory compliance with RBI's reporting norms.
Who it affects
Treasury desks at banks and primary dealers, Corporate relationship managers handling FX hedging, Risk management teams monitoring forex exposure
What is the source of this data?
The data is released by the Reserve Bank of India as a press release, covering daily merchant and inter-bank foreign exchange transactions for the specified period.
Are these figures final or provisional?
The data is marked as provisional and may be subject to revision by RBI.
How can banks use this data operationally?
Banks can benchmark their own FX turnover against the market aggregates, adjust pricing strategies, and monitor liquidity conditions for better treasury management.