RBI Schedules 5 Billion Dollar USD/INR Buy/Sell Swap Auction for May 26
The Reserve Bank of India will conduct a three-year USD/INR Buy/Sell swap auction on May 26, 2026, targeting a volume of USD 5 billion. This operation allows Authorized Dealer Category-I banks to swap US dollars for rupee liquidity, with the reverse leg settlement set for May 29, 2029.
To manage evolving liquidity conditions, the Reserve Bank of India (RBI) has announced a foreign exchange swap auction of USD 5 billion. Under the 'Buy/Sell' framework, eligible Authorized Dealer (AD) Category-I banks will sell US dollars to the RBI at the FBIL Reference Rate for the near leg, while simultaneously agreeing to repurchase the same amount at a predetermined premium for the far leg on May 29, 2029.
The auction will utilize a multiple price-based format. Participants must submit bids in paisa terms (up to two decimal places), representing the premium they are willing to pay the RBI for the three-year tenor. Bids will be ranked in descending order, and the cut-off premium will align with the notified USD 5 billion amount. The minimum bid size is USD 10 million, with subsequent increments of USD 1 million.
| Parameter | Details |
|---|---|
| Auction Date | May 26, 2026 |
| Total Notified Amount | USD 5 Billion |
| Tenor | 3 Years (Maturity: May 29, 2029) |
| Eligible Bidders | AD Category-I Banks |
| Minimum Bid Size | USD 10 Million |
Glossary
Buy/Sell Swap: A tool where the RBI acquires foreign currency in the spot market and commits to selling it back at a future date, effectively injecting rupee liquidity.
FBIL Reference Rate: The benchmark exchange rate for the Indian Rupee, calculated by Financial Benchmarks India Pvt Ltd.
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