RBI FX operations drain 20 billion from liquidity
Reserve Bank of India foreign exchange operations have soaked up an estimated 20 billion dollars of excess rupee liquidity in recent weeks. The measures halved the banking system liquidity surplus from record highs.
Xurve View
Insights:
Xurve View
The Reserve Bank of India has drained an estimated $20 billion in surplus liquidity through aggressive foreign exchange operations during September morning sessions. The central bank's intervention has more than halved the banking system's liquidity surplus from a peak of 11.16 trillion rupees. The aggressive liquidity withdrawal aims to stabilize currency markets and manage domestic money supply.
