BasisPointInsight.com - Why the RBI Uses Buy-Sell FX Swaps and What They Really Mean by V Thiagarajan RBI’s buy-sell FX swaps are read as rupee signals. They are not. An explainer on why swaps manage liquidity and hedging, not the exchange rate. by V Thiagarajan, BasisPointInsight.com

1/2 Are RBI’s buy-sell FX swaps really about the rupee’s direction, or are markets reading too much into a routine liquidity tool? What do these auctions actually say about reserves, hedging demand, and the central bank’s evolving FX playbook?

#CentralBankOperations #LiquidityTools #CurrencyMarkets