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RBI to conduct USD/INR buy-sell swap auction of $5 billion on December 16
Dec-09-2025

Reserve Bank of India (RBI) is planning to conduct a USD/INR buy-sell swap auction of $5 billion (about Rs 45,000 crore) for a tenor of thirty-six months on December 16, 2025 to inject liquidity. The swap is in the nature of a simple buy/sell foreign exchange swap from the Reserve Bank side. A bank will sell US dollars to the Reserve Bank and simultaneously agree to buy the same amount of US dollars at the end of the swap period. Under the swap auction, the minimum bid size would be $10 million and in multiples of $1 million thereafter.

Besides, the RBI will also conduct an open market operation (OMO) purchase auctions of government securities for an aggregate amount of Rs 1,00,000 crore in two tranches of Rs 50,000 crore each on December 11, 2025 and December 18, 2025. The RBI also said it will continue to monitor evolving liquidity and market conditions and take measures as appropriate to ensure orderly liquidity conditions. The central bank had decided on a USD/INR buy-sell swap and OMO after reviewing the liquidity situation and the outlook.

The decision on the two measures to manage liquidity conditions was announced by RBI Governor Sanjay Malhotra, while unveiling the bi-monthly monetary policy. He had said ‘I would like to reiterate that we are committed to providing sufficient durable liquidity to the banking system. We continuously assess the durable liquidity requirements of the banking system due to changes in currency in circulation, forex operations, and reserve maintenance. Going forward, too, we shall continue to do so’. He added that the measures will ensure adequate, durable liquidity in the system and further facilitate monetary transmission. 


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