RBI seen using near-maturity dollar/rupee FX swaps to absorb surplus rupee liquidity
Traders say the Reserve Bank of India is likely running near-maturity dollar/rupee sell-buy swaps to absorb surplus rupee liquidity linked to overseas deposits raised by lenders.
The Reserve Bank of India is likely conducting near-maturity dollar/rupee sell-buy swaps as part of its recent efforts to absorb surplus rupee liquidity created by overseas deposits raised by lenders, bankers said. The central bank is carrying out the swaps with a group of banks, the source said.