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Rupee & Dollar Swap Auctions

Kumari Sonali

Rupee & Dollar Swap Auctions:

RBI announced a $10 billion USD/INR buy/sell swap auction to inject ₹86,000 crore into the banking system.It is a tool used by RBI to manage liquidity in the economy and stabilize currency volatility. Banks sell US dollars to RBI in exchange for rupees in the first leg and agree to repurchase dollars at a future date. The Reserve Bank of India (RBI), as part of its monetary policy interventions, executes the swap auctions.

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