MUMBAI, Sept 29 (Reuters) – The Reserve Bank of India’s foreign exchange operations have soaked up an estimated $20 billion of excess rupee liquidity, two bankers said, with dollar-rupee swaps playing a prominent role in liquidity management.
The RBI has used a combination of dollar-rupee sell-buy swaps, spot dollar sales, bond sales and variable-rate reverse repos in recent weeks to drain excess liquidity from the banking system.
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