RBI opens dollar-swap window

Why is it in the news?
  • The Reserve Bank of India (RBI) has opened a six-month dollar sell-buy swap window to pump liquidity in the foreign exchange market.
  • The move following financial markets in India and across the globe experiencing turbulence over the spread of COVID-19.
  • The spread of COVID-19 could lead to a slowdown in growth.
More in the news
  • The central bank will conduct U.S. dollar-rupee sell-buy swaps worth $2 billion on March 16, to begin with, in its effort to fight market volatility.
  • The swaps would be conducted through the auction route in multiple tranches and the auctions would be multiple price-based, that is, successful bids will be accepted at their respective quoted premiums.
Source
The Hindu.
Posted by Jawwad Kazi on 13th Mar 2020
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