The notified amount in the RBI Swap auction gets a bid of more than three times

                 RBI Swap auction 

In the purchase / sale of second dollar-rupees, a healthy demand was seen with 255 bids of $ 18.65 billion compared to the notified amount of $ 5 billion with the Reserve Bank of India.

Dealers said that the high cut-off premium signs were mostly kept away, but companies and NBFC saw it as a good opportunity to reduce hedging costs compared to the secondary market.

The cut-off premium was 838 pa from the last time of 776 paise. In a statement after the auction, the RBI said that in the first phase, the liquidity of the injection was 434,874 crores. This move will reduce the foreign exchange reserves of the country, which is now close to $ 415 billion.

"Companies that raise money through the external commercial borrowing route, they find the cost of this route effective due to the reduced hedging cost compared to the secondary market," said a dealer.

The RBI added this new toolkit for liquidity management to reduce the liquidity in order to reduce its dependence on open market operations. On March 26, the RBI had bought $ 5 billion through similar swap

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