RBI Governor Sanjay Malhotra
To strengthen the banking system and the rupee, the country’s banking lender RBI has made a big plan. This plan is not a big one. RBI has made a plan of Rs 45 thousand crore for this. The day chosen for this is also very special. 16 December. This is the same day when India forced Pakistan to surrender in the 1971 war. Which the whole country celebrates as Victory Day. Now the biggest question is, what is RBI going to do on 16th December? Will there be a big play with the dollar? Is RBI going to do something which has not been done before today? Let us tell you also…
rupee dollar swap
The Reserve Bank of India said on Monday that it will auction five billion US dollars (about Rs 45,000 crore) on December 16 for the US dollar-Indian rupee swap. This will be done to inject additional cash into the financial system. This auction rupee is also likely to get a lot of support. Under this, banks will sell dollars to RBI and in return RBI will give rupees to the banks. This increases the amount of money in the system.
This is how the auction will happen
The central bank said that this swap will be a simple foreign currency buy/sell swap on behalf of the Reserve Bank. At the end of the swap period, banks agree to buy back the same amount of US dollars. RBI said in a statement that on December 16, the Reserve Bank will auction US Dollar – Indian Rupee buy-sell swap of five billion US dollars for a period of 36 months. Under this, the minimum bid size will be 10 million US dollars and after that bids can be made in multiples of 10 lakh dollars.
RBI will buy government securities in two phases
Apart from this, RBI will also conduct purchase auction of government securities worth Rs 50000 crore each in two phases on December 11 and December 18, 2025, totaling Rs 1 lakh crore. RBI said that it will continuously monitor the changing liquidity position and market conditions and will take necessary steps to ensure liquidity.