RBI Likely To Infuse Liquidity Into Market
Anew sell-buy swap could help resurrecting the premiums to some extent. The recent spending by the Centre after maintaining months of cash balances has brought down the deficit to lowest in last three months.
Most market participants are expecting that the Reserve Bank of India (RBI) will take delivery of the US dollar, thus infusing liquidity into the market. This would serve dual purpose. A swap of $5 billion is getting due on March 11, which RBI had done for a period of two years in 2022 by doing a sell-buy.