RBI announces $5 billion dollar-rupee swap, auction scheduled for May 26

The Reserve Bank of India is injecting $5 billion into the banking system through a USD/INR buy-sell swap auction on May 26. This move aims to boost long-term liquidity amidst a weakening rupee and global uncertainties. Banks will sell dollars to the RBI and buy them back in three years, with bids based on premium offers.

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