RBI to inject liquidity via a $10 billion USD-INR swap arrangement.

• RBI plans to conduct a $10 billion USD-INR Buy/Sell swap auction for three years.

• The auction will be held from 10.30 am to 11.30 am on February 28, 2025.

• The auction will be multiple-price based, with successful bids accepted at their respective quoted premium.

• This is the second swap auction by the RBI in a month, following a $5.1 billion injection in January.

• The swap mechanism will provide immediate liquidity support, bolstering market confidence and preventing excessive exchange rate volatility.

• Authorised Dealers – Category-1 banks will be eligible to participate in the auction.