RBI buys $5bn in FX swaps auction

Unusual move to inject long-term liquidity into the system is heavily oversubscribed

rupee-india-counting-notes

A move by the Reserve Bank of India to inject long-term liquidity into the market drew strong demand in an auction today (March 26).

The one-off foreign exchange swap saw the central bank buy $5 billion from banks in exchange for 345.6 billion rupees with a tenor of three years. One US dollar was worth 69 rupees in trading this afternoon.

The operation was heavily oversubscribed, with bids totalling $16.3 billion and successful bidders paying an average premium of 7.92 rupees. Banks will pay

To continue reading...

You need to sign in to use this feature. If you don’t have a FX Week account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: