RBI's USD-INR swap draws $10.3-billion bids

Kolkata: The Reserve Bank of India (RBI) received bids worth $10.35 billion for its $5-billion dollar-rupee buy-sell swap programme at a premium cut-off at ₹7.65. The central bank accepted bids amounting to $5.07 billion, a little over the notified $5 billion plan.

It was a three-year swap programme whereby RBI bought dollars to inject durable liquidity into the system. It would sell dollars back after three years.

The swap is part of the central bank's plan to ensure adequate durable liquidity in the inter-bank market. This is expected to improve transmission of the policy rate cuts. In parallel, the RBI has infused ₹49,791 crore via the two-day variable rate repo (VRR) auction and ₹77,379 crore through 10-day VRR auction as part of its short-term liquidity adjustment policy.