RBI schedules $5bn dollar-rupee swap May 26 after rupee slips
Business
The Reserve Bank of India (RBI) is stepping in to steady the rupee, which has slipped past 96 to the US dollar thanks to global uncertainty and high demand for dollars.
On May 26, the RBI will hold a $5 billion dollar-rupee swap auction, basically giving banks more rupees now in exchange for dollars, with a plan to swap back after three years.
Auction minimum bid $10m, $1m steps
Banks sell their dollars to the RBI and agree to buy them back later, so there are more rupees flowing in the system without shrinking India's foreign exchange reserves.
The minimum bid is $10 million, increasing in $1 million steps.