RBI To Inject Liquidity Through Long Term USD/INR Buy/Sell Swap Auction
FinTech BizNews Service
Mumbai, February 21, 2025: 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. Accordingly, the Reserve Bank will be conducting a USD/INR Buy/Sell swap auction of USD 10 billion for a tenor of 3 years.
The details of the auction are as under:
| Swap Amount (USD Billion) | Auction date | Auction Time | Near Leg/Spot Date | Far Leg Date |
| 10 | February 28, 2025 | 10.30 AM to 11.30 AM | March 04, 2025 | March 06, 2028 |
The market participants would be required to place their bids in terms of the premium that they are willing to pay to the Reserve Bank for the tenor of the swap, expressed in paisa terms up to two decimal places. The auction cut-off would be based on the premium. The auction would be a multiple-price based auction, i.e., successful bids will get accepted at their respective quoted premium.
