Skip to content
Free updates Login
SSCBankingNABARD / RBI

RBI $10 Billion USD/INR Buy/Sell Swap Auction: Key Numbers

1 March 20251 min read
BANKING & FINANCERBI $10 BillionUSD/INR Buy/SellSwap Auction: KeyNumbers1 March 2025safalsetu.com

Why in the news

The RBI auctioned a three-year dollar-rupee swap to ease tight rupee liquidity while limiting currency swings.

Key facts

  • Swap size: $10 billion, buy/sell, tenor three years.
  • Cut-off premium: ₹6.55, below the ₹6.62 the market expected.
  • Rupee: ₹87.51 per dollar, against ₹87.20 earlier; the RBI also sold dollars via public sector banks.
  • Dollar Index: 107.37, up from 106.62.
  • Forex reserves: up $4.7 billion to $640 billion, mainly on $4.2 billion foreign currency asset gains.

How the market read it

  • Corporates bid strongly; banks wanted higher premiums.
  • Banks saw the RBI as a safer counterparty and skipped capital-charge worries.
  • Forward premiums eased after results.
  • Rupee support near ₹86.6, resistance near ₹87.5.

Exam angle

  • Instrument: USD/INR buy/sell swap, three years.
  • Related terms: forward premium, liquidity deficit, Dollar Index.

Test yourself

1. What was the tenor of the USD/INR buy/sell swap auction held by the RBI for $10 billion?

The RBI auctioned a $10 billion buy/sell swap with a three-year tenure.

2. In the RBI's $10 billion swap auction, how much worth of bids did the RBI receive in total?

Bids of $16.23 billion were received, and $10.06 billion was accepted.

3. By how much did India's forex reserves rise to reach $640 billion, as reported alongside the RBI swap auction?

Reserves increased $4.7 billion, mainly on $4.2 billion gains in foreign currency assets.

This topic is part of Daily Current Affairs 1 March 2025 (15 topics).

All topics of the dayDay quizMarch 2025

Read more