Archive · 4 Aug 2025
RBI Likely Completes $5 Billion USD/INR Swap Amid High Liquidity
The Reserve Bank of India (RBI) likely completed a $5 billion swap, where they exchanged dollars for rupees and then reversed the transaction.
This is happening because there is already a lot of money available in the banking system.
The RBI is taking some money out of the system, but not a lot.
Experts think that the RBI is carefully managing how much money is available in the market.
RBI likely conducted the second leg of a $5 billion USD/INR buy/sell swap.
Market participants noted high system liquidity despite the swap's impact.
RBI is expected to drain approximately ₹43,000 crore from the system.
RBI conducted the first leg of the six-month buy/sell operation in January.
Partial rollover of the swap suggests a calibrated liquidity approach.
- Who
- Reserve Bank of India (RBI)
- What
- The Reserve Bank of India likely conducted the second leg of a $5 billion USD/INR buy/sell swap.
- When
- The swap matured on Monday. Published on August 4, 2025
- Where
- India
- Why
- To manage liquidity in the banking system.
- Swap Amount
- $5 billion
- Liquidity Drain
- Approximately ₹43,000 crore
- System Liquidity (August 3)
- ₹4.09 lakh crore
