RBI sees heavy subscription for forex swap amid liquidity demand
Showcasing sustained demand for rupee liquidity amid changing market landscapes, the Reserve Bank of India (RBI) has received robust response for its USD/INR Buy/Sell swap auction with nearly twice subscriptions than the notified amount of $5 billion.
Participants in the auction placed bids totaling $9.80 billion against the announced $5 billion offer. The RBI received 254 bids at the auction and accepted 141 bids. The bid to cover ratio stood at 1.96. The cut-off premium was established at 910 paise, with weighted average premium of accepted bids at 920.64 paise.
Further, the partial allotment as percentage of competitive bids at cut-off premium stands at 18.10 per cent. The swap arrangement is set for a three-year term, with settlements planned for May 29, 2026, and May 29, 2029.
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