RBI Announces $10 Billion USD/INR Swap Auction for February 4, 2026

The Reserve Bank of India (RBI) on January 27 announced that it will conduct a USD/INR buy/sell swap auction worth $10 billion with a tenure of three years, as part of its liquidity management measures.

Auction Timeline and Settlement Dates

The auction will be held on February 4 between 10:30 am and 11:30 am. The near leg, or spot leg, of the transaction will be settled on February 6, 2026, while the far leg is scheduled for February 6, 2029.

Under the swap arrangement, the RBI will buy US dollars from banks in exchange for rupees in the first leg and will sell the dollars back at a pre-determined future date along with a premium in the reverse leg.

Bidding Process and Auction Format

Market participants will be required to submit bids quoting the premium they are willing to pay for the swap tenure. The premium must be expressed in paisa terms up to two decimal places. The RBI said the auction will follow a multiple price-based format, with successful bids accepted at their respective quoted premiums.

Also Read: RBI Extends Directive for Indian Mercantile Co-operative Bank Limited Until April 27, 2026

The central bank had announced this swap auction on January 23 as part of a broader set of steps aimed at managing liquidity conditions in the banking system.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a private recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.