RBI to hold $5 bn USD/INR swap auction Dec 16 to boost liquidity

• RBI to conduct a USD/INR buy-sell swap auction of USD 5 billion on December 16.
• The swap is for a 36-month tenor and aims to inject liquidity into the system.
• Minimum bid size for the swap auction is USD 10 million.
• RBI will also conduct open market operations (OMO) to purchase government securities worth Rs 1,00,000 crore on December 11 and 18.
• These measures are intended to ensure adequate liquidity and facilitate monetary transmission.

Why It Matters: RBI's USD/INR swap injects liquidity, impacting financial stability and monetary policy.