Further, the RBI will also execute a three-year dollar-rupee buy-sell swap of $10 billion on February 4 and a 90-day floating rate repo operation of ₹25,000 crore on January 30. The $10 billion swap would inject nearly ₹92,000 crore into the banking system. The Monetary Policy Committee (MPC) will announce the outcome of its latest policy review on February 6.
The market wants more The three measures, ₹1 lakh crore in OMOs, a $10 billion forex swap and a ₹25,000 crore repo, are aimed at creating a sustainable surplus and boosting interest rate transmission
“They (the RBI) will have to continue doing OMOs in the coming months. We expected ₹2 lakh crore of OMOs in February and March, and we expect more measures of ₹5 lakh crore next financial year,” said Gaura Sen Gupta, chief economist, IDFC First Bank.
System liquidity stood at a daily average surplus of ₹57,120 crore so far in January and ₹72,549 crore in December. As a percentage of the NDTL (net demand and forward liabilities), liquidity is 0.2% in January and 0.3% in December.
The latest liquidity measures come after the RBI executed OMO purchases of ₹3 lakh crore and a USD-INR buy-sell swap of $15 billion in December and January. Market participants expect more liquidity measures this fiscal year and the next.
“With these latest liquidity measures, liquidity will be around 0.9% of NDTL, assuming there is not much liquidity leakage through foreign exchange market interventions,” said Gupta. ET reported in its January 23 edition that banks have sought additional liquidity support from the central bank.
#RBI #lines #big #liquidity #boost #rupees #slideshow