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Informist, Friday, Mar. 21, 2025

--RBI did not buy or sell any gilts outside of OMO auction in week to Mar 14

NEW DELHI – The Reserve Bank of India did not buy or sell government bonds in the secondary market in the week ended Mar. 14, data released Friday by the central bank showed. This was the sixth straight week when the RBI was absent from the secondary market after buying INR 388.15 billion worth of gilts through its screen-based operations in January.

While the RBI refrained from secondary market activity, it continued to buy gilts through auctions. The RBI has bought a total of INR 2.0 trillion of bonds through open market operation auctions since January. Of this, INR 1 trillion was through two OMO auctions in March. It will buy another INR 500 billion worth of six gilts at an OMO auction on Tuesday.

RBI's bond purchases are part of its liquidity infusion measures, which began in the second half of January after its heavy dollar sales in the foreign exchange market to prop up the rupee led to a significant tightening in rupee liquidity. In addition to its bond purchases, the RBI has conducted multiple long-term variable rate repos and dollar/rupee buy/sell swap auctions in addition to fine-tuning operations. It is scheduled to conduct a $10 billion, three-year dollar/rupee buy/sell swap auction on Monday.  End

US$1 = INR 85.97

Reported by Aaryan Khanna

Edited by Tanima Banerjee

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