- The Reserve Bank of India conducted sell-buy swaps with lenders, with maturities running from one month to about six months.
- The operations totalled at least $10 billion and were executed over the past two weeks, reducing liquidity in the financial system.
- The RBI's stated motive is to curb inflation risks arising from surplus cash in the banking system.
Quotes
“carried out currency swaps worth at least $10 billion in recent weeks to reduce liquidity in the financial system”
“The Reserve Bank of India conducted the so-called sell-buy swaps with lenders over the past two weeks, including deals with maturities ranging from one month to about six months”