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RBI conducts forex swap for $5 billion
March 26, 2019
Even as one reads this, the Reserve Bank of India will be conducting a $5 billion forex swap, whereby it will buy dollars from banks for three years in exchange for rupees.
The move will lead to, one, the central bank boosting its forex reserves and, two, infuse more cash into the banking system.
The auction is scheduled to be held between 9.30 am and 11 am today, and its success may well decide if the RBI will take recourse to this option in the future as well, when faced with a liquidity crunch.
You can read all about the forex swap on
Bloomberg.com,
here.
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