ForumIAS LATEST
- CSAT Classes for Prelims 2027 by Rishi Bhargav sir starts 2 Nov. at 5 PM Click Here to know more →
- Prelims Sprint classes for Prelims 2027 start 2 Nov. Click Here to know more →
- The Reserve Bank has decided to inject long-term liquidity into the system through foreign exchange swap arrangement.The word swap means exchange.Under this arrangement,banks would be required to keep dollar funds with RBI with a deal to buy it back from the RBI after three years.
- Swap is a new tool to enhance liquidity in the system through which RBI would buy as much as $5 billion from the banks in a swap deal.This would infuse nearly 35,000 crores into the system.
- The dollars raised through this arrangement will reflect in the RBI’s foreign exchange reserves.
