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Doubt Clearance Thread: UPSC 2021

@TheNotorious RBI will give dollars and the buyer gives rupees and the transaction will be reversed later in Sept 2020. So it a 6-month sell-buy swap from RBI. It helps those banks that have seen a big outflow of dollars as foreign funds sell their shares, and with the rupees buy dollars to exit the country. Since there is excessive dollar buying by FPIs, RBI is replenishing the market with dollars


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