ANI
21 May 2026, 01:31 GMT+10
New Delhi [India], May 20 (ANI): The Reserve Bank of India (RBI) on Wednesday announced a USD 5 billion dollar-rupee swap auction aimed at injecting long-term liquidity into the banking system amid pressure on the rupee and foreign investor outflows.
In simple terms, the move will allow banks to give US dollars to the RBI in exchange for rupees for a fixed period, helping improve the availability of funds in the banking system.
The RBI said it will conduct a USD/INR Buy/Sell swap auction of USD 5 billion for a tenor of three years on May 26.
The central bank added that the move has been taken 'to meet the durable liquidity needs of the system.'
Under the arrangement, banks will sell US dollars to the RBI and receive rupees in return. After three years, the RBI will return the dollars to banks and take back the rupees.
The RBI has been taking several measures in recent months to maintain adequate liquidity in the banking system.
The move comes at a time when the Indian rupee has faced pressure due to global uncertainty and foreign investor outflows from Indian equity markets.
Foreign investors have pulled out billions of dollars from Indian markets amid global uncertainty and pressure on emerging market currencies.
The central bank said the auction will be conducted through a multiple-price auction method, where banks can place bids during a one-hour window. (ANI)
Get a daily dose of Middle East Star news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Middle East Star.
More InformationWASHINGTON, D.C.: The United States is investigating whether Chinese companies deliberately reduced global production of shipping containers...
HONG KONG: Standard Chartered said on May 19 that it will eliminate more than 7,000 jobs over the next four years as the bank increases...
PARIS, France: The head of the International Energy Agency warned on May 18 that commercial oil inventories are being depleted quickly...
BEIJING, China: President Donald Trump left Beijing on May 15 after two days of meetings with Chinese President Xi Jinping that produced...
New Delhi [India], May 20 (ANI): The Reserve Bank of India (RBI) on Wednesday announced a USD 5 billion dollar-rupee swap auction aimed...
DUBAI, 20 May, 2026 (WAM) -- Louis Margueritte, Chief Executive Officer of Business France, the French national agency for international...
WASHINGTON/DUBAI: U.S. President Donald Trump said on May 19 that the United States might need to carry out another strike on Iran....
CARACAS, Venezuela: Ten days after the state confirmed to Carmen Navas that her son had died in state custody, the 82-year-old passed...
DUBLIN, Ireland: Fifteen people who avoided paying tolls on the M50 motorway, including car, truck, and van owners, were fined a total...
ROTTERDAM, Netherlands: Authorities at the Dutch port of Rotterdam prepared quarantine arrangements on May 18 for the remaining 23...
LONDON/NEW YORK CITY: The war involving the United States, Israel and Iran has already cost companies around the world at least US$25...
LONDON, U.K.: Prince William plans to sell portions of the Duchy of Cornwall over the next decade to help finance more than £500 million...
