RBI to inject $10 billion via 3-year dollar/rupee buy/sell swap

The Reserve Bank of India will conduct a longer duration dollar/rupee buy/sell swap to infuse durable liquidity into the banking system next week, the central bank said on Friday.

The RBI will conduct a three-year buy/sell swap worth $10 billion on February 28. The first leg of the transaction would be settled on March. 4.

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

The RBI has infused more than 3.6 trillion rupees ($41.56 billion) of durable liquidity into the banking system through a combination of debt purchases, FX swap and longer duration repos.