India Central Bank's FX Blitz Drains Nearly US$20 Billion From Surplus Liquidity
4 Articles
4 Articles
RBI’s forex blitz drains nearly $20 billion from surplus liquidity, bankers say
The central bank’s sell/buy swaps have pushed dollar-rupee forward premiums higher, raising the cost of hedging dollar exposure, with the one-year premium up around 50 basis points this month
RBI Drains Nearly $20 Billion From Surplus Liquidity
The Reserve Bank of India has absorbed an estimated $20 billion in excess rupee liquidity from the banking system through foreign exchange operations, according to two bankers. The RBI has used dollar-rupee sell-buy swaps, spot dollar sales, bond sales and variable-rate reverse repos to manage surplus funds. The measures, combined with tax outflows, have sharply […]
In recent weeks, the RBI has used four tools together to reduce excess liquidity: dollar-rupee sell-buy swap operations, dollar sales in the spot market, bond sales, and variable-rate reverse repurchase auctions...
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