RBI’s Dollar Swap Signal: How India’s Central Bank Used Liquidity Strategy to Defend Stability
At a time when the Indian rupee was approaching psychologically sensitive lows and global uncertainty was intensifying, the Reserve Bank of India’s USD 5 billion USD/INR buy-sell swap auction on 26 May 2026 emerged as far more than a routine foreign exchange operation. It was a calibrated macro-financial intervention designed to achieve multiple objectives simultaneously:…