RBI Injects Liquidity with USD 10 Billion Forex Swap
The Reserve Bank of India will conduct a USD 10 billion forex swap auction to inject long-term liquidity into the banking system. This move aims to address durable liquidity needs.
Mumbai, Feb 21 (PTI) The Reserve Bank on Friday announced a huge USD 10 billion dollar-rupee swap auction programme to inject durable liquidity in the banking system.
The USD/INR Buy/Sell swap auction of USD 10 billion for a tenor of 3 years will be conducted on February 28, the central bank said in a statement.
The swap is in the nature of a simple buy/sell foreign exchange swap from the Reserve Bank side.
A bank shall sell US dollars to the Reserve Bank and simultaneously agree to buy the same amount of US dollars at the end of the swap period.
"In order to meet the durable liquidity needs of the system, the Reserve Bank has decided to inject Rupee liquidity for longer duration through long-term USD/INR Buy/Sell swap. Accordingly, the Reserve Bank will be conducting a USD/INR Buy/Sell swap auction of USD 10 billion for a tenor of 3 years," the central bank said.
In January also, the RBI had announced liquidity injection worth over Rs 1.5 lakh crore through different instruments, including USD 5 billion forex swap.
The USD/INR Buy/Sell swap auction of USD 10 billion for a tenor of 3 years will be conducted on February 28, the central bank said in a statement.
The swap is in the nature of a simple buy/sell foreign exchange swap from the Reserve Bank side.
A bank shall sell US dollars to the Reserve Bank and simultaneously agree to buy the same amount of US dollars at the end of the swap period.
"In order to meet the durable liquidity needs of the system, the Reserve Bank has decided to inject Rupee liquidity for longer duration through long-term USD/INR Buy/Sell swap. Accordingly, the Reserve Bank will be conducting a USD/INR Buy/Sell swap auction of USD 10 billion for a tenor of 3 years," the central bank said.
In January also, the RBI had announced liquidity injection worth over Rs 1.5 lakh crore through different instruments, including USD 5 billion forex swap.
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