RBI's USD/Rupee Swap Infuses $10 Billion Liquidity Amid Strong Demand

The Reserve Bank of India conducted a $10 billion USD/INR swap auction to provide long-term liquidity. The auction, settled on March 4 and 6, was oversubscribed 1.62 times with 244 bids received. A total of 161 bids, amounting to $10.06 billion, were accepted, amid rupee-dollar trading volatility.

The Reserve Bank of India (RBI) conducted a $10 billion USD/INR swap auction on Friday, attracting significant interest and receiving 244 bids, out of which 161 were accepted. The auction, with a tenor of 3 years, aims to inject long-term liquidity into the financial system.

This move comes as the rupee traded at 87.46 against the US dollar, reflecting global financial uncertainties. Notably, the swap auction was oversubscribed by 1.62 times, highlighting robust demand for liquidity in the market.

The RBI's strategic initiative follows earlier measures where over Rs 1.5 lakh crore for liquidity was injected via various instruments, including a $5 billion forex swap in January, to stabilize the currency and financial markets.

(With inputs from agencies.)