RBI adds $5 billion via currency swap to boost liquidity
Mint Hyderabad
|December 17, 2025
The Reserve Bank of India (RBI) injected $5 billion through a foreign-exchange swap auction, deploying the tool for the first time since March as signs of liquidity strain emerge among lenders.
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The operation is part of RBI's plan to add $16 billion of liquidity into the banking system this month. In a buy-sell swap, RBI purchases dollars from banks against rupees and agrees to sell them back at a future date—injecting rupee cash upfront.
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