RBI to Inject $10 Billion Through Forex Swap to Ease Liquidity Crunch:
The Reserve Bank of India (RBI) has announced a $10 billion foreign exchange (forex) swap to inject liquidity into the banking system and address the prevailing cash crunch. The three-year swap auction is scheduled for February 28, 2025. This move follows a previous $5 billion forex swap last month, highlighting the central bank’s commitment to stabilizing liquidity. The banking sector has been facing one of the worst liquidity shortfalls in over a decade, partly due to RBI’s aggressive dollar sales to shield the rupee from volatility.
