RBI to conduct a US$/INR Buy/Sell swap auction of US$ 5 billion for tenor of 3 years on 23 April 2019
In order to meet the durable liquidity needs of the system, the Reserve Bank has decided to inject Rupee liquidity for longer duration through long-term foreign exchange Buy/Sell swap in terms of its extant Liquidity Management Framework. The US Dollar amount mobilized through this auction would also reflect in RBI's foreign exchange reserves for the tenor of the swap while also reflecting in RBI's forward liabilities.Accordingly, it has been decided to conduct a US$/INR Buy/Sell swap auction of US$ 5 billion for tenor of 3 years on 23 April 2019.
The market participants would be required to place their bids in terms of the premium that they are willing to pay to the Reserve Bank for the tenor of the swap, expressed in paisa terms up to two decimal places. The auction cut-off would be based on the premium. The auction would be a multiple-price based auction, i.e., successful bids will get accepted at their respective quoted premium.
The minimum size of each bid should be US$ 10 million and in multiples of US$ 1 million thereafter.
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