The Reserve Bank of India (RBI) on January 13 received almost three times bids at the USD/INR Buy/Sell Swap Auction, but accepted bids worth $10 billion.
According to the central bank's release, the RBI received bids worth $29.94 billion, but the central bank accepted $10 billion bonds at cut-off premium of 728 paisa.
The number of bids received at the auction was 348 bids, of which 42 bids were accepted. the bid to cover ratio was 2.99, and Weighted Average Premium of accepted bids was at 731.12 paisa, release said.
The near leg or spot leg is on January 16, 2026, and the far leg is on January 16, 2029.
In this mechanism, RBI buys U.S. Dollars from banks in exchange for Rupees (first leg) and agrees to sell them back at a pre-determined future date along with a premium (reverse leg).
On December 24, the central bank said it will conduct $10 billion USD/INR Buy/Sell Swap auction for a tenure of three years.
The RBI announced this auction during the announcement of the December monetary policy in order to inject durable liquidity in the banking system.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
