RBI accepts $5 bn from banks at currency swap auction to ease liquidity

RBI has bought 3 trillion rupees of debt this financial year

India’s central bank accepted the $5 billion it targeted from banks at its currency swap auction to ease liquidity ahead of the financial year-end this month. The authority said it received 240 bids worth $16.31 billion. The cutoff was set at a premium of 776 paise, according to a statement.

“The amount received has been very decent and that shows it has been a successful move,” said Paresh Nayar, head of currency and money markets at FirstRand Ltd. in Mumbai. “This also leads to belief that the RBI might be prompted to come out with more of such liquidity injections