The Reserve Bank of India (RBI) on December 8 said it will conduct $5 billion USD/INR Buy/Sell Swap auction for a tenure of thirty-six months, according to the release.

The auction will take place on December 16, between 10:30 AM and 11:30 AM.

The near leg or spot leg is on December 18, 2025, and the far leg is on December 18, 2028.

In this mechanism, RBI buys U.S. Dollars from banks in exchange for Rupees (first leg) and agrees to sell them back at a pre-determined future date along with a premium (reverse leg).

The central bank said that the market participants would be required to place their bids in terms of the premium that they are willing to pay to the Reserve Bank for the tenor of the swap, expressed in paisa terms up to two decimal places.

“The auction cut-off would be based

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