New Delhi, May 21 -- Amid the falling Indian rupee, the Reserve Bank of India (RBI) has stepped in with all available options to stabilise the currency against the US dollar.
The RBI will conduct as USD 5 billion USD-INR buy and sell swap auction on May 26 to inject long-term liquidity in the banking system. The swap is in the nature of a simple buy/sell foreign exchange swap from the RBI's side.
Under the arrangement, a retail bank can sell US dollars to the Reserve Bank and simultaneously agree to buy the same amount of US dollars at the end of the swap period.
India's foreign exchange reserves have declined by nearly $38 billion since the outbreak of the Iran war.
Further, according to reports, the RBI has also held a series of inter...