RBI accepts USD 5.135 billion in USD/INR sell-buy swap auction

The Reserve Bank of India has accepted USD 5.135 billion in USD/INR sell-buy swap auction conducted on Tuesday against the notified amount of USD 5 billion.

Last month, the RBI had announced to undertake a USD/INR two-year sell/buy swap auction of USD 5 billion. In today’s auction, the total amount bid by participants was USD 13.565 billion, the RBI said in a release.

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The central bank received 246 bids but accepted 86 bids in the auction, the release said. The bid to cover ratio was 2.71. Under the sell-buy swap auction, a bank buys US dollars from the Reserve Bank and simultaneously agrees to sell the same amount of US dollars at the end of the swap period.