NEW DELHI: The central bank plans to sell dollars to banks and take out rupee liquidity via a forex swap, a move that will help the monetary authority manage liquidity in the banking system ahead of the country’s biggest share sale.
The Reserve Bank of India (RBI) will enter into sell-buy swaps worth $5 billion with banks on March 8 to elongate the maturity profile of its forward dollar book, it said in a statement late Monday after the close of markets.