India wants to pump $32 billion into its banking system liquidity in just a month

India will inject historic $32 billion worth of rupee liquidity into its banking system over the next month, according to the Reserve Bank of India (RBI) on Tuesday. The central bank confirmed it will carry out open market bond purchases worth 2 trillion rupees ($22.34 billion) between December 29 and January 22, alongside a $10 billion dollar-rupee buy/sell swap scheduled for January 13. The intervention is a response to pressure the RBI has been getting from traders and bankers, who flagged a surge in forward premiums on the dollar-rupee that needed to be brought under control. India’s liquidity tools target excess dollar supply and weak rupee flows With year-end regulatory constraints already tightening lending options, the bond market demanded the RBI step in and ease rupee liquidity while draining out surplus dollar inflows that have distorted pricing at the long end of the FX curve. India’s 10-year bond yield closed...

https://www.cryptopolitan.com/india-to-inject-32-billion-liquidity/