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Rupee Forwards Retreat After Central Bank Unveils FX Swap, Spot Treads Water
The RBI will inject ₹2 lakh crore via government securities and conduct a $10 billion dollar-rupee swap to stabilize liquidity and forex market volatility.
- Reserve Bank of India announced on December 23, 2025, OMO purchase auctions of ₹2,00,000 crore and a $10 billion Dollar-Rupee swap to inject liquidity.
- To ease market strain, the Reserve Bank of India said it aims to provide liquidity and handle volatility after buying 6.5 lakh crore of government bonds in 2025.
- The RBI specified four tranches of 50,000 and scheduled the Dollar-Rupee swap auction for January 13, 2026, with a three-year tenor.
- Market-Watchers expect rupee liquidity to increase as the measure should ease pressure on depleting dollar reserves and remove excess dollar liquidity inflating the dollar‑rupee forward premium, analysts said.
- Following earlier FX operations, the RBI's latest steps build on a December 16, 2025 three‑year $5 billion swap, with RBI Bulletin showing $17.69 billion purchased and $29.56 billion sold of U.S. currency.
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RBI to infuse Rs 2.90 lakh crore liquidity via bond buys, USD swap
The Reserve Bank of India is injecting Rs 2.90 lakh crore into the banking system. This will be done through bond purchases and a dollar-rupee swap. These measures aim to ease tight cash conditions. Short-term rates have risen above the central bank's target. The RBI's intervention is expected to stabilize yields and improve market sentiment.
·India
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RBI to inject Rs 2 Lakh Crore via OMO purchases, dollar swap to boost liquidity in banks - The Tribune
'The purchases will be carried out in four equal tranches of Rs 50,000 crore each, scheduled for December 29, 2025; January 5, 2026; January 12, 2026; and January 22, 2026,' the RBI said.
·Chandigarh, India
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Coverage Details
Total News Sources15
Leaning Left3Leaning Right2Center1Last UpdatedBias Distribution50% Left
Bias Distribution
- 50% of the sources lean Left
50% Left
L 50%
C 17%
R 33%
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