RBI’s surprise $5 bln swap seen cooling forward premiums, easing bank liquidity strain
“This is just reordering the maturity of forwards so that the amount of stress reduces on a monthly basis,” a senior economist said on condition of anonymity. “It’s not meant to inject liquidity… Basically, whatever swaps are going to mature, instead of being rolled over for one month, they’ve been rolled over for three years. It isn’t that extra money is coming in. It’s just getting rolled over in a more organized way.”
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