# Success of RBI’s rare $5 bn India FX swap may spur an encore - The HinduBusinessLine

> Bloomberg reports that the RBI's $5 billion three-year dollar-rupee swap auction may be repeated if it is seen as a success. The RBI buys dollars from banks and supplies rupees, which adds to its reserves and injects liquidity before the fiscal year-end.

- Date: 2019-03-26 · published 2019-03-26T12:00:00.000Z
- Category: macro · region India · magnitude low
- Page: https://feedsoft.ai/events/60386-success-of-rbi-s-rare-5-bn-india-fx-swap-may-spur-an-encore-the
- Commodities: [Indian Rupee (INR per USD)](https://feedsoft.ai/c/USDINR.md)

## Why it matters

The tool could become a recurring source of rupee liquidity and affects how much the RBI leans on the rupee. Any change in the currency's path would matter for India's import costs, but the feed-price impact is limited.

## Read by commodity

- USDINR: neutral

## Sources

- thehindubusinessline.com: https://www.thehindubusinessline.com/money-and-banking/success-of-rbis-rare-5-bn-india-fx-swap-may-spur-an-encore/article26641060.ece

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