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RBI injects rupee liquidity via forex swap auction
Our Bureau Mumbai | Updated onMarch 26, 2019 Published on March 26, 2019
The ₹34,561 cr generated could be used to support credit growth
The Reserve Bank of India’s attempt to inject rupee liquidity through foreign exchange swap auction has received good response.
Against the notified amount of $5 billion for the rupee-dollar swap, banks authorised to deal in foreign exchange offered $16.31 billion at the auction. Out of $16.31 billion received via 240 offers by market participants, the RBI accepted $5.02 billion via 89 offers. The liquidity of ₹34,561 crore generated due to the swap auction could support credit growth — especially at a time when credit growth is outpacing deposit growth — and soften bond yields.