Reserve Bank of India

Date : Apr 01, 2019

RBI to inject Rupee liquidity through long term USD/INR Buy/Sell Swap auction

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 foreign exchange Buy/Sell swap in terms of its extant Liquidity Management Framework. The US Dollar amount mobilized through this auction would also reflect in RBI’s foreign exchange reserves for the tenor of the swap while also reflecting in RBI’s forward liabilities.

Accordingly, it has been decided to conduct a USD/INR Buy/Sell swap auction of USD 5 billion for tenor of 3 years on April 23, 2019. The details of the auction are as under:

Swap Amount
(USD Billion)
Auction date Auction Time Near Leg/Spot Date Far Leg Date
5 April 23, 2019 9.30AM-11.00AM April 25, 2019 April 25, 2022

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.

The minimum size of each bid should be USD 10 million and in multiples of USD 1 million thereafter. Other operational guidelines as given in the Annex of press release no. 2018-2019/2184 dated March 13, 2019 for the USD/INR Buy/Sell Swap auction remain unchanged.

Jose J. Kattoor
Chief General Manager

Press Release: 2018-2019/2340

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