[INDIAN ECONOMIC NEWS] Good morning, everyone. I’m Kim suhyeon staff of Kamagroup Pvt. Ltd. Here I have an important Indian economic news to share with you which is as undermentioned.
Mumbai-The Reserve Bank of India is using a new tool to enhance liquidity in the system through which it would buy as much as $5 billion fr om the banks in a swap deal that could inject nearly 35,000 crores in to the system. Banks would be required to park dollar funds with RBI with a deal to buy it back fr om the RBI after three years.
The auction for this first of its kind US dollar buy/sell swap auction will take place on March 26. This is the first time the central bank is using a foreign exchange auction to augment banking liquidity after generally using bond purchases for the same all these years. RBI has infused more than Rs 2.36 lakh crore through such purchases so far this fiscal.
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