4 months ago
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On a reappraisal of existent liquidity and fiscal conditions, the Reserve Bank of India (RBI) connected Tuesday (December 23, 2025) announced to behaviour Open Market Operation (OMO) acquisition auctions of Government of India securities for an aggregate magnitude of ₹2,00,000 crore (USD 22.34 billion) and Dollar Rupee (USD/INR) Buy/Sell Swap auction of $10 cardinal for a tenor of 3 years to inject liquidity into the banking system.
While the authorities securities purchases volition beryllium conducted successful 4 tranches of ₹50,000 crore each to beryllium held on December 29, 2025, January 05, 2026, January 12, 2026, and January 22, 2026, the Dollar Rupee Swap auction volition beryllium held on January 13, 2026, the RBI said.
According to analysts these caller measures too infusing rupee liquidity into the banking strategy would instrumentality distant excess dollar liquidity which is believed to person inflated dollar rupee guardant premium. Also this measurement is expected to supply a breather to the depleting dollar reserves which is connected relationship of dollar income by the RBI successful the marketplace to enactment a falling rupee which has been bearing the brunt of U.S. tariff.
As per information made disposable by the RBI it had sold a nett of $11.88 cardinal successful the inter-bank forex marketplace successful October 2025 to apprehension rupee’s fall. According to the latest variation of RBI Bulletin the cardinal slope had purchased $17.69 cardinal and had sold $29.56 cardinal of the U.S. currency.
To supply liquidity successful the strategy arsenic good arsenic to grip the volatility successful the overseas speech marketplace the RBI has purchased authorities bonds worthy 6.5 lakh crore truthful acold successful 2025. On December 16, 2025 it had conducted a 3 years Dollar Rupee buy/sell swap of $5 billion.
The Reserve Bank said it would proceed to show evolving liquidity and marketplace conditions and instrumentality measures arsenic due to guarantee orderly liquidity conditions.
