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
![RBI Announced US Dollar Sell/Buy Swap RBI Announced US Dollar Sell/Buy Swap](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi9nSRXGSrikbQLConIQpw2OrxRdQjiWOM3lB5M8z3ZLItA91teMEaCuZqFWxe3wCypBiAd5R_ghReQ6QZ8r7_be3Pr7rrgzKSyGkNGBICCypcb3OkYp1V8iGNQpn5bmFTg3wEHSNjYUYyE/s320-rw/US+Dollar.jpg)
- 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