System liquidity rose by around Rs 1188 billion month on month and was at a surplus of Rs 8285 billion as of 15th Nov 2021. Reverse Repo stood at Rs 9.36 trillion. Currency in circulation rose by Rs 363 billion on monthly basis in Nov 2021(as of 5th Nov).
Liquidity has been in high surplus for a while and is likely to stay in surplus of around Rs 5 trillion going forward. Government spending, RBI G-SAP and fx flows will keep liquidity high. RBI is buying Rs 1 trillion of bonds this quarter under G-SAP. Covid lockdown will keep government spending high while fx flows can continue on back of global liquidity.
System liquidity came down by around Rs 2074 billion months on month and was at a surplus of Rs 3923 billion as of 19th March 2021. Reverse Repo stood at Rs 5.02 trillion. Currency in circulation rose by Rs 245 billion in March 2021(as of 19th March).
Total Forex reserves stood at USD 583.87 billion as of 19th February 2021. In FY21, Forex reserves increased by USD 106.06 billion. RBI bought USD 10.01 billion in December and has cumulatively bought USD 72.38 billion in the April-December period.
RBI has added a whopping Rs 7 trillion of liquidity as it built up fx reserves this fiscal year. Along with huge government spending, the liquidity surplus is highly inflationary in nature and RBI has to sterilize the liquidity. It has taken initial steps to suck out excess liquidity through term reverse repos but it needs to have a more longer term solution such as MSS bonds.
System liquidity rose by around Rs 1463 billion month on month and was at a surplus of Rs 6557 billion as of 24th December 2020. Reverse Repo stood at Rs 6.12 trillion. Currency in circulation rose by Rs 371 billion in November 2020.