Current context: The Reserve Bank of India has announced a six month US dollar sell/buy swap in a statement issued on 12th March 2020.
a. Two
b. Four
c. Six
d. Eight
- The US dollar sell/buy swap is announced by RBI observing the mismatch in the US dollar liquidity across the world.
- Due to COVID 19 outbreak, a slump in international crude prices and a decline in bond yields in advanced economies, financial markets worldwide are facing intense selling pressures on extreme risk aversion.
- The swaps will be conducted through the auction route in multiple tranches and the auction be multiple prices based.
- The first swap worth $2 billion US dollars will be conducted on 16th March 2020.
Question:
Q.1 The RBI has recently announced a __________ month US dollar sell/buy swap to provide liquidity to the foreign exchange market?a. Two
b. Four
c. Six
d. Eight
