RBI announces dollar/rupee two-year sell buy swap auction 

The Reserve Bank of India (RBI)  announced a US Dollar/Rupee two-year sell buy swap auction with a view to elongating the maturity profile of its forward book and smoothen the receivables relating to forward assets.

The Central bank will undertake a sell/buy swap auction of $5 billion, which will enable access to a wider set of market participants. RBI will conduct a spot sale to sell USD 5 billion to banks in exchange of rupees, through this auction on March 10, 2022.

On March 11, 2024, it will make a forward purchase from banks in two years. The forward purchase will help in reducing RBI’s current foreign exchange reserves and increase its two-year forward USD purchases.