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On a review of current liquidity and financial conditions, the Reserve Bank of India (RBI) on Tuesday (December 23, 2025) announced to conduct Open Market Operation (OMO) purchase auctions of Government of India securities for an aggregate amount of ₹2,00,000 crore (USD 22.34 billion) and Dollar Rupee (USD/INR) Buy/Sell Swap auction of $10 billion for a tenor of 3 years to inject liquidity into the banking system.
While the government securities purchases will be conducted in four tranches of ₹50,000 crore each to be held on December 29, 2025, January 05, 2026, January 12, 2026, and January 22, 2026, the Dollar Rupee Swap auction will be held on January 13, 2026, the RBI said.
According to analysts these fresh measures besides infusing rupee liquidity into the banking system would take away excess dollar liquidity which is believed to have inflated dollar rupee forward premium. Also this measure is expected to provide a breather to the depleting dollar reserves which is on account of dollar sales by the RBI in the market to support a falling rupee which has been bearing the brunt of U.S. tariff.
As per data made available by the RBI it had sold a net of $11.88 billion in the inter-bank forex market in October 2025 to arrest rupee’s fall. According to the latest edition of RBI Bulletin the central bank had purchased $17.69 billion and had sold $29.56 billion of the U.S. currency.
To provide liquidity in the system as well as to handle the volatility in the foreign exchange market the RBI has purchased government bonds worth 6.5 lakh crore so far in 2025. On December 16, 2025 it had conducted a three years Dollar Rupee buy/sell swap of $5 billion.
The Reserve Bank said it would continue to monitor evolving liquidity and market conditions and take measures as appropriate to ensure orderly liquidity conditions.
Published – December 23, 2025 10:55 pm IST
