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The Reserve Bank of India (RBI) turned net buyer of the US currency in April, after it purchased $1.965 billion from spot market, the central bank data showed.

In the reporting month, the central bank bought $11.965 billion and $USD 10 billion in the spot market, according to RBI's monthly bulletin for June released on Thursday showed.

In March this year, the RBI had net sold $20.101 billion. It had purchased $4.315 billion and sold $24.416 billion in the spot market, the RBI data added.

During the fiscal 2022, the RBI had net purchased $17.312 billion. It had bought $113.991 billion and sold $96.679 billion in the spot market in FY 2021-2022.

In the forward dollar market, the outstanding net purchase at the end of April 2022 was $63.826 billion, compared to a purchase of $65.791 billion in March 2022, the central bank data showed.

As per an RBI article on the state of the economy, India is better placed than many other nations to avoid the risks of a potential stagflation amid an increasingly hostile external environment.

The article, published in the RBI's June bulletin, noted that global economic conditions continue to deteriorate as ratcheting up of commodity prices and financial market volatility have led to heightened uncertainty.

"In the midst of this increasingly hostile external environment, India is better placed than many other countries in terms of avoiding the risks of a potential stagflation," said the article authored by a team led by RBI's Deputy Governor Michael Debabrata Patra.

Stagflation refers to a situation where inflation as well as unemployment are high, while demand remains stagnant in the economy.

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