Forex Swap

  • On 31st January 2025, the Reserve Bank of India (RBI) conducted a dollar-rupee buy/sell swap for $5 billion on Friday, with the transaction to be reversed on August 4.
  • The swap aimed to inject Rupee liquidity aggregating about Rs 1.50 lakh crore into the banking system.
  • A forex swap is a financial agreement where two parties exchange currencies for a specified period and agree to reverse the transaction at a later date.
  • In the context of the RBI's forex swap, it involves the central bank buying foreign currency (USD) from banks while simultaneously providing equivalent rupee liquidity to the ....
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