More Stories

Informist, Monday, Dec. 8, 2025

--RBI to conduct $5 bln, 36-month dlr-rupee buy-sell swap auction Dec 16
--RBI to conduct 36-mo dlr-rupee buy-sell swap auction 1030-1130 IST Dec 16

MUMBAI – The Reserve Bank of India will conduct a $5 billion dollar-rupee buy-sell swap auction Dec. 16, wherein it will buy dollars for immediate delivery and sell them for delivery after 36 months to inject rupee liquidity, the central bank said in a release Monday. The swap will reverse on Dec. 18, 2028.

Durable liquidity was in a surplus of INR 3.61 trillion as on Nov. 14, according to latest data. While this will get a boost from the INR 660 billion addition on account of a cash reserve ratio cut at the end of November, the RBI's consistent dollar sales – both in the spot market and by taking delivery of a maturing dollar-rupee buy-sell swap – is seen driving down rupee liquidity. December is a seasonally tight month for banking liquidity with advance tax and goods and services tax payments between Dec. 15 and Dec. 22 to the government draining over INR 3 trillion of cash. The March quarter is likely to a see further organic outflows from the banking system on account of an increase in currency in circulation.

The RBI had announced the swap auction Friday to infuse durable liquidity into the financial system. In addition to the foreign exchange route, it will also inject liquidity by buying gilts worth INR 1 trillion through open market operations in December, the central bank said. RBI had conducted $25 billion of dollar-rupee buy-sell swap auctions in the March quarter, of which $5 billion matured in August. The other swap auctions conducted earlier this year will mature in February and March 2028.

Market participants will place their bids in terms of the premium they are willing to pay to the RBI, in paisa terms up to two decimal places, the release said. The auction will be multiple-price based and will take place between 1030 IST and 1130 IST. The result of the auction will be announced on the same day.

The minimum bid size will be $10 million and in multiples of $1 million thereafter. The eligible participants are allowed to submit multiple bids. However, the aggregate amount of bids submitted by a single eligible entity should not exceed the notified amount of the auction, the release said. 

The RBI will decide the quantum of the US dollar amount to be accepted. The central bank will also reserve the right to accept bids for less than the aggregate amount, to accept marginally higher than the notified amount due to rounding-off, or to accept or reject any or all the bids, either wholly or partially, without assigning any reasons, the release said.  End

US$1 = INR 90.07

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Aaryan Khanna

Edited by Deepshikha Bhardwaj

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.