Sources said the Reserve Bank of India ran at least $10 billion of
foreign-exchange swap operations in recent weeks to withdraw system liquidity
and curb inflationary risk from excess cash. The bank executed sell-buy swaps
with lenders across tenors from one month to about six months. Three- to
six-month dollar-rupee contract rates rose this month, reflecting the
operations. The reported scale exceeds recent publicly announced swap activity —
typically offered in $3–5 billion batches — underscoring the larger cash surplus
the central bank is addressing.
