Back to Career News

RBI announces another $5bn sell-buy swap

March 30, 2022

RBI announces another $5bn sell-buy swap
The Reserve Bank of India will conduct a dollar-rupee sell-swap auction for $5 billion on April 26, 2022 for elongating the maturity profile of the forwarding book and smoothening the receivables relating to forwarding assets.

Treasury executives said the move is aimed toward managing liquidity in the domestic system. Through this, it would suck out access liquidity for a long span and furthermore signal for the upward push for the interest rate at the short end. This will be the second such auction after conducting the same operation on March 08, 2022.
 
The proposed closeout on April 26 and one directed on March 8, 2022 would mean RBI would deal $10 billion and take out rupee liquidity worth ₹75,000 crore, experts said.
 
It might have little impact the value of Indian money against the US dollar. The value is more determined by flows and demand in the daily market.
 
At dollar-rupee sell-swap auction held on March 08, the RBI has accepted $5.135 billion against the advised measure of $5 billion. The auction saw three times more bids than the notified amount. 
Important Links:

Recommended for you ...

Axis Bank to increase penetration in rural India
Axis Bank to increase penetration in rural India

November 29, 2022

YES Bank acquires 9.9% stake in JC Flowers ARC
YES Bank acquires 9.9% stake in JC Flowers ARC

November 29, 2022

Kotak bank partners with actyv.ai to provide dealer finance
Kotak bank partners with actyv.ai to provide dealer finance

November 29, 2022

Chat on WhatsApp