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Another Round, Another Record: RBI Receives Bids For $18.65 Billion For Its Second Dollar-Rupee Swap Auction
RBI Governor Shaktikanta Das. (Vipin Kumar/Hindustan Times via Getty Images)
The Reserve Bank of India (RBI) has hit a home run yet again with its second tranche of its dollar-rupee swap auction programme setting new records, in terms of both the number and the size of the bids, reports The Hindu BusinessLine (BL).
Like the first round of dollar-rupee swap auction carried out by the RBI in March 2019, the second one too had an auction size of $5 billion. The second auction received a total of 255 bids worth $18.65 billion against 240 bids worth $16.31 billion received in the first round.
The rousing success to this nimble liquidity boosting measure implemented by the Governor Shaktikanta Das had helped pump in rupee equivalent of $5 billion into the system a month ago, while also marking a surge in the net foreign exchange reserves of the RBI.
The new round executed yesterday (23 April 2019) is expected to further assist in addressing the liquidity woes that the economy is facing presently.
This initiative absorbs the domestically available US dollars and helps the RBI avoid tapping into the foreign exchange markets, thus also ensuring that no rise in the value of rupee takes place despite the liquidity thrust.
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