The Reserve Bank of India (RBI) will conduct a $5 billion USD swap, Governor Shaktikanta Das announced during the monetary policy briefing on Friday. The move is aimed at strengthening foreign exchange liquidity and ensuring smooth functioning of currency markets amid global volatility.
The swap operation is expected to support the rupee, which has recently breached the 90-per-dollar mark, and provide additional comfort to the banking system as global funding conditions tighten.
This announcement came alongside other major policy measures, including a 25 basis point cut in the repo rate to 5.25%, and Open Market Operation (OMO) purchases worth ₹1 trillion, signalling the central bank’s proactive stance in managing liquidity on both domestic and external fronts.
By deploying a USD swap of this scale, the RBI aims to stabilise forex flows, balance short-term currency pressures, and fortify overall macroeconomic stability.
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