Profit

RBI To Hold Second Round Of Dollar-Rupee Swap Auction Of $5 Billion

In the first round, the central bank set a premium of Rs 7.76 and accepted the entire planned $5 billion on sale.

 Share
EMAIL
PRINT
COMMENTS
RBI To Hold Second Round Of Dollar-Rupee Swap Auction Of $5 Billion

This comes after RBI said last month it will conduct a dollar-rupee buy-sell swap auction of $5 billion


The Reserve Bank of India (RBI) said on Monday it would conduct another round of dollar-rupee buy-sell swap of $5 billion for a tenure of three years on April 23, its second such auction within a month.

The new swap auction tool is meant to provide the central bank greater flexibility in managing banking system cash, while helping soak up any potential large dollar inflows that could make the rupee rise sharply.

This comes shortly after the RBI said last month it will conduct a dollar-rupee buy-sell swap auction of $5 billion for a tenure of three years on March 26, the first such market sale by the central bank to mop up dollars and pump in rupees.

In the first round, the central bank set a premium of Rs 7.76 and accepted the entire planned $5 billion on sale.

In 2013, then central bank governor Raghuram Rajan announced a similar forex deposit swap arrangement at a subsidised market rate to attract dollars and prevent the rupee's free fall during the worst currency crisis since 1990s.



Get Breaking news, live coverage, and Latest News from India and around the world on NDTV.com. Catch all the Live TV action on NDTV 24x7 and NDTV India. Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.

NDTV Beeps - your daily newsletter

................................ Advertisement ................................

................................ Advertisement ................................

................................ Advertisement ................................

Top