RBI to inject liquidity through long term Currency Swap auction

The Reserve Bank of India has announced that it will be conducting a USD/INR Buy/Sell swap auction of USD 10 billion for a tenor of three years. The auction date is 13 January, 2026.

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 on the premium. The auction would be a multiple-price based auction, i.e., successful bids will get accepted at their respective quoted premium.

Under the swap auction, minimum bid size would be USD 10 million and in multiples of USD 1 million thereafter. The eligible participants are allowed to submit multiple bids. However, the aggregate amount of bids submitted by single eligible entity should not exceed the notified amount of auction.