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    Question

    The recent RBI $5 billion USD/INR swap is expected to

    drain approximately how much liquidity from the system?
    A ₹33,000 crore Correct Answer Incorrect Answer
    B ₹38,000 crore Correct Answer Incorrect Answer
    C ₹40,000 crore Correct Answer Incorrect Answer
    D ₹43,000 crore Correct Answer Incorrect Answer
    E ₹45,000 crore Correct Answer Incorrect Answer

    Solution

    In a USD/INR buy/sell swap, the RBI sells dollars and buys rupees to absorb liquidity. The second leg of this $5 billion swap is expected to drain ₹43,000 crore from the system. However, given the surplus liquidity (₹4.09 lakh crore), the overall impact on liquidity conditions remains limited.

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