India RBI Adds $5 Billion Via Currency Swap to Boost Liquidity
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Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000India’s central bank injected $5 billion through a foreign-exchange swap auction, deploying the tool for the first time since March as signs of liquidity strain emerge among lenders.The operation is part of the Reserve Bank of India’s plan to add $16 billion of liquidity into the banking system this month. In a buy-sell swap, the RBI purchases dollars from banks against rupees and agrees to sell them back at a future date — injecting rupee cash upfront.