<p>Mumbai: The <a href="https://www.deccanherald.com/tags/rbi">Reserve Bank of India</a>'s (RBI) $10 billion, 3-year dollar/rupee buy-sell swap auction on Monday to boost rupee liquidity was oversubscribed by a little over two times, with the cutoff rate set at 5.86 rupees.</p>.<p>Under the swap, the central bank will inject liquidity amounting to $10.04 billion equivalent of rupees into the banking system on Wednesday. The transaction will be reversed in three years.</p>.<p>The swap is part of series of measures that the RBI has taken to ease a liquidity crunch in the banking system. The liquidity deficit stood at about 2 trillion rupees ($23.27 billion) last Friday.</p>.<p>The central bank injected about $64 billion worth of rupee liquidity into the system through open market bond purchases, longer-tenor repo operations, and FX swaps, before Monday's auction.</p>.Indian economy remains resilient despite global trade tensions: RBI Bulletin.<p>The RBI set the swap's cutoff premium at Rs 5.86, lower than the Rs 6.55 set for a similar-sized and duration auction held late last month.</p>.<p>The weighted average premium of the bids accepted was Rs 5.92, it said, compared to Rs 6.73 in the previous auction.</p>
<p>Mumbai: The <a href="https://www.deccanherald.com/tags/rbi">Reserve Bank of India</a>'s (RBI) $10 billion, 3-year dollar/rupee buy-sell swap auction on Monday to boost rupee liquidity was oversubscribed by a little over two times, with the cutoff rate set at 5.86 rupees.</p>.<p>Under the swap, the central bank will inject liquidity amounting to $10.04 billion equivalent of rupees into the banking system on Wednesday. The transaction will be reversed in three years.</p>.<p>The swap is part of series of measures that the RBI has taken to ease a liquidity crunch in the banking system. The liquidity deficit stood at about 2 trillion rupees ($23.27 billion) last Friday.</p>.<p>The central bank injected about $64 billion worth of rupee liquidity into the system through open market bond purchases, longer-tenor repo operations, and FX swaps, before Monday's auction.</p>.Indian economy remains resilient despite global trade tensions: RBI Bulletin.<p>The RBI set the swap's cutoff premium at Rs 5.86, lower than the Rs 6.55 set for a similar-sized and duration auction held late last month.</p>.<p>The weighted average premium of the bids accepted was Rs 5.92, it said, compared to Rs 6.73 in the previous auction.</p>