New Delhi [India], December 8 (ANI): The Reserve Bank of India (RBI) will inject liquidity into the banking system through a long-term USD/INR Buy/Sell Swap auction, aimed at easing financial conditions amid heightened liquidity needs. The central bank will conduct a 36-month swap auction of USD 5 billion on December 16, 2025, according to an RBI press release.
Market participants will submit bids based on the premium they are willing to pay to the RBI for the three-year tenor, quoted in paisa terms up to two decimal places. The auction will follow a multiple-price format, with successful bids accepted at the exact premium quoted. The near leg, or spot date, of the swap is scheduled for December 18, 2025, while the far leg, when the swap unwinds, falls on December 18, 2028.
This swap forms part of a broader liquidity plan for December 2025. Earlier, the RBI announced two Open Market Operation (OMO) purchase auctions of Government of India securities worth a total of Rs 1,00,000 crore, scheduled for December 11 and December 18, with each tranche valued at Rs 50,000 crore. The USD/INR swap auction represents the second leg of these liquidity measures.
The RBI stated that detailed instructions for each operation will be issued separately to ensure clarity in the bidding process and reiterated its commitment to monitor evolving liquidity and market conditions, taking appropriate measures to maintain orderly financial conditions.
About The Author
