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RBI announces another $5-bn dollar/rupee sell-buy swap on April 26

The move is aimed to take out excess liquidity

Rupee, rupee vs dollar
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Abhijit Lele Mumbai
The Reserve Bank of India will conduct a dollar-rupee sell-swap auction for $5 billion on April 26, 2022 for elongating the maturity profile of forward book and smoothen the receivables relating to forward assets.

Treasury executives said the move is aimed at managing liquidity in the domestic system. Through this it would suck out excess liquidity for a long duration and also signal for further upward push for interest rate at short end. This will be the second such auction after conducting the same operation on March 08, 2022.

The proposed auction on April 26 and one conducted on March

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First Published: Mar 29 2022 | 9:42 PM IST

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