RBI drains $20 billion liquidity via FX operations
after close1 source ↓written by the desknot a recommendation
- of excess rupee
- $20 billion
- liquidity surplus
- ₹11.16 trillion
- ₹5.5 trillion
The Reserve Bank of India has absorbed $20 billion of excess rupee liquidity through various foreign exchange operations, including dollar-rupee swaps and bond sales. This action has reduced the banking system's liquidity surplus from ₹11.16 trillion to ₹5.5 trillion.
The decline in liquidity may impact interest rates and the rupee's valuation, signaling tighter monetary conditions ahead. 📉
Not investment advice. For informational purposes only.