INSUBCONTINENT EXCLUSIVE:
This comes after RBI said last month it will conduct a dollar-rupee buy-sell swap auction of $5 billionThe Reserve Bank of India (RBI) said
on Monday it would conduct another round of dollar-rupee buy-sell swap of $5 billion for a tenure of three years on April 23, its second
such auction within a month.The new swap auction tool is meant to provide the central bank greater flexibility in managing banking system
cash, while helping soak up any potential large dollar inflows that could make the rupee rise sharply.This comes shortly after the RBI said
last month it will conduct a dollar-rupee buy-sell swap auction of $5 billion for a tenure of three years on March 26, the first such market
sale by the central bank to mop up dollars and pump in rupees.In the first round, the central bank set a premium of Rs 7.76 and accepted the
entire planned $5 billion on sale.In 2013, then central bank governor Raghuram Rajan announced a similar forex deposit swap arrangement at a
subsidised market rate to attract dollars and prevent the rupee's free fall during the worst currency crisis since 1990s.Get the latest
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