Observing mismatch in US dollar liquidity across the world, the Reserve Bank has announced a six month US dollar sell/buy swap to provide liquidity to the foreign exchange market. In a statement issued from Mumbai today, RBI said, the first swap worth two billion US dollars will be conducted on Monday.

RBI has said that financial markets are facing intense selling pressures due to coronavirus infection. It said that volatility in global markets has been spiked by a slump in international crude prices and a decline in bond yields in advanced economies.

Stating that it is closely and continuously monitoring the rapidly evolving global situation and spillovers, RBI assured that it ready to take all necessary measures to ensure that the effects of COVID-19 pandemic on the Indian economy are mitigated. RBI added that the level of forex reserves, which stood at 487.24 billion dollars as of 6th March, remains comfortable to meet any exigency.

All sectoral indices recorded a fall of over five percent with shares of realty, metal, oil and gas, banking and finance sectors suffering maximum selling.