RBI to settle $5 billion dollar-rupee swap without rollover, say bankers

The four bankers said the Indian Reserve Bank would ripen a RUPI change of $ 5 billion on Monday and that the excess ruup liquidity in the banking system needs Rollover very little.

The delivery of the exchange implies that the RBI sells dollars and that it is absorbing rupees from the banking system – a low -probability movement of money markets, Rupi liquidity, which is currently excessive, demands anonymity because they are not authorized to speak with the media.

The 5 billion dollars of purchasing on Monday, the dollar/Rupi, the six -month swap, was part of a series of measures taken by the Central Bank to increase the rupees liquidity from January to May.
“The purpose of exchange was to inject the liquidity of Inr.” He said. During the start of the exchange in January, the Central Bank acquired the dollar by injecting rupees into the banking system.

“Now, when the system runs a surplus, settlement will not cause any deterioration – and to offer this RBI room.”

India’s banking system has increased more than 3.60 trillion Indian rupees ($ 41.2 billion) – the highest and equivalent to about 1.5% of the total deposits in four weeks. RBI President Sanjay Malhotra stated that in April, the central bank tried to keep the excess levels at 1% of the deposits. “At this point, Rupi liquidity is very comfortable and it makes sense for the central bank to deliver dollars,” Karur Vysya Bank. In addition, a clearing trader at a medium-sized private sector bank said that it has not seen or heard the purchase/sales exchange of any large size made through state banks.

Dollar-URUPEE close-term swaps, RBI’nın exchange of the maturity of no sign of any signs of deterioration. Cash – Temporary exchange is quoted in 0.34/0.35 PAISA, which means an annual yield of 5.8% – only marginalized over banks.

(1 $ = 87.4050 Indian rupees)