RBI plans $5B 36-month USD/INR swap to boost liquidity

• RBI will conduct a long-term USD/INR Buy/Sell Swap auction to inject liquidity into the banking system.
• The 36-month swap auction, valued at USD 5 billion, is scheduled for December 16, 2025.
• Market participants will bid on the premium in paisa terms, with successful bids accepted at the quoted premium (multiple-price format).
• The swap's near leg is December 18, 2025, and the far leg (unwinding) is December 18, 2028.
• This swap is part of a broader December 2025 liquidity plan, which also includes Rs 1,00,000 crore in OMO purchase auctions.

Why It Matters: RBI's USD/INR swap boosts liquidity, easing financial conditions.