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RBI to inject $10 bn via second swap auction on 28 Feb

Mint Mumbai

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February 22, 2025

The dollar-rupee buy-sell swap auction is part of a series of steps announced by the RBI to improve liquidity

- Anshika Kayastha

The Reserve Bank of India (RBI) will conduct a three-year US dollar-rupee buy-sell swap auction of $10 billion on 28 February to inject liquidity into the banking system.

"In order to meet the durable liquidity needs of the system, the Reserve Bank has decided to inject rupee liquidity for longer duration through long-term USD/INR buy/sell swap," the central bank said in a statement.

Market participants would be required to place their bids in terms of the premium that they are willing to pay to RBI for the tenor of the swap, based on which the auction cut-off will be decided.

This will be the second swap auction by the central bank in 2025, after it infused $5.1 billion through a six-month swap on 31 January.

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