FX Demand Surges as Global Trade Flows Drive Merchant Transactions, Says RBI
The Reserve Bank of India (RBI) has released crucial data detailing daily merchant and Inter-Bank foreign exchange transactions for the period spanning June 22, 2026, through June 25, 2026. All figures are reported in USD Millions, offering a granular look into the activity levels across both retail trade and wholesale financial markets.The data set provides insights into specific flows, including Spot transactions, Forward contracts, Cancellation of Forwards, across merchant and inter-bank segments. The report is provisional, with detailed statistics released by the RBI on July 13, 2026.
Merchant Market Activity Reflects Trade Flows
The Merchant segment demonstrates vigorous daily activity in foreign exchange operations. Transactions are segregated into FCY/INR (Rupee-linked trade) and FCY/FCY (Currency cross transactions).In terms of merchant purchases, the volume maintained strong levels across the four days analyzed. For instance, on June 24, 2026, FCY/INR purchases reached 8,353 USD Millions in Spot markets, highlighting significant inward trade flow.
The counterpart sales figures also show robust daily activity within this segment. On June 25, 2026, the volume of merchant purchases stabilized at 8,939 USD Million (FCY/INR). Merchant activities consistently involve substantial volumes across both spot and forward contracts.
Inter-Bank Market Dynamics Show Massive Institutional Flows
The Inter-Bank market segment, dealing with transactions between financial institutions, registered significantly larger flows compared to the merchant sector. These wholesale trades indicate deep liquidity and active risk management among banking entities.Inter-bank Spot purchases (FCY/INR) registered impressive figures, reaching a high of 24,814 USD Millions on June 25, 2026. This metric underscores the scale of institutional currency exchange occurring in the market.
Swap and Forward activities also recorded massive flows. For example, FCY/INR Spot transactions were near 24,000 USD Million across the four days. The volumes observed suggest high levels of short-term financial hedging and positioning within the banking community.
Detailed Snapshot of Foreign Exchange Transactions
The data provides a granular view of daily operational shifts. Looking closely at the FCY/INR Merchant segment, purchases saw consistent fluctuations, recording 5,977 USD Million on June 22, 2026, before reaching higher levels later in the week. Sales activity also showed volatility, ranging from 617 to 8,939 USD Million across the monitored days.In the Inter-Bank sector, Spot transactions saw varied daily performance. While FCY/INR Spot registrations hovered around the 20,000+ USD Million mark throughout the week, the smaller but critical FCY/FCY spot activities showed a steady flow across these major financial participants.
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