ForumIAS announcing GS Foundation Program for UPSC CSE 2025-26 from 19 April. Click Here for more information.
ForumIAS Answer Writing Focus Group (AWFG) for Mains 2024 commencing from 24th June 2024. The Entrance Test for the program will be held on 28th April 2024 at 9 AM. To know more about the program visit: https://forumias.com/blog/awfg2024
- 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.
