Explained: Forex Swap.

The Reserve Bank of India (RBI) has decided to inject rupee liquidity into the system through long-term foreign exchange buy/sell swap - a first-of-its-kind instrument used for liquidity management.
In order to meet the durable liquidity needs of the system, the Reserve Bank has decided to augment its liquidity management toolkit and inject rupee liquidity for longer duration through long-term foreign exchange buy/sell swap.
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Watch the video for a simplistic explanation of the issue.
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[@jitendrasinghsolanki9350]

Excellent sir.....
You made economy interesting........ you broken the myth that teacher should be funny while teaching...... very well explained...to the point.....

[@siri4332]

The explanation was very concise and CLEAR. Thank you Sir.

[@sangeetamehta4349]

Ur lectures on economics give deepp insight in the topic😊😊😊😊

[@SatyamSharma-kn7zg]

Excellent explanation, precise and to the point.
Thank you Byjus !

[@Joe79275]

brilliant faculty!!!!!

[@meditationmelody5143]

So depth And thoughtful lecture ,thank u sir

[@raviprakash-rc9fx]

Really we are owe you sir. thank you for great effort sir

[@mohdibrahim524]

Crystal clear ✴️

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[@Knowledgearchive007]

thank you so much shyam sir

[@lokeshkhanna9824]

Fantastic explanation sir....

[@krishnasatapathy4120]

Dear byjus, one thing i not understood. When RBI repurchases G securities from banks, then it enables inflow of liquidity in the banks. Then how it can be a reason for introducing forex swap which aims to induce liquidity.

[@arihantjain3519]

G securities was one of the way it can soar liquidity, as it has already issued G sec to their highest limit, that's why they issued forex swap to induce more

[@vikrantsharma2339]

Thank you for the brief. Forex swap has happened on some premium through bids. Can you explain the reason of paying premium? Also who is paying premium to whom after 3 years.

[@harishantil2681]

There is already liquidity because of G sec worth 2.8 crore purchased by govt, due to elections and due to advance tax payments by corporates. Then why currency swap for creating more liquidity?

[@chinthankr4811]

As per our current fiscal policy the Inflation should be maintained at 4% . However the current inflation rate is at around 2.5 %. The other measures such as OMO's has not helped to meet the 4% mark. Hence this measure is required to maintain inflation at the said target.

[@manikyambalasundaravarma9670]

As usual Extraordinary explanation!!!

[@ananthboudhmanabhan]

Excellent Video!!!

[@amanlohiya6768]

outstanding explanation Sir.

[@BYJUSIAS]

Thank You for your appreciation. Share the video with fellow IAS Aspirants and subscribe to our channel. Press the bell icon to never miss another update.

[@abhishekthakur2415]

U are awesome sir.thanks alot

[@avulavyas6341]

Great explanation sir. Thank you.

[@shubhamgarg4255]

Thanks Sir. Well "Explained".

[@krishnachandranputhuvayilk2836]

excellent explanation . thanks a lot

[@saikiranksn454]

Sir please do give some questions based on this topic which may come in prelims and mains that would really help us out.

[@dorimon690]

It means it affect the value of Dollar, am I right?
How do Forex exchange reserve would increased Although we have charge printing cost of rupee for infusion ?

[@surenderramakrishnan5488]

It will impact the value of dollar domestically because the value of dollar not depend upon single country money appreciation, and our domestic money will circulate inside the market but dollar have inflow and outflow which is depend on the status of domestic economy during a certain period.

[@ramkishoremech]

Succinct and clear explanation..

[@johndoe-wj8sl]

do currency swap be a forex swap?

[@venkyudutha7361]

Superb sir

[@aashiarora3275]

How are elections causing liquidity pressure on banks? Can't relate.

[@Bambon794]

During election pol parties would need more money so there could be pressure on the liquidity

[@dps8681]

Surplus expenditure by Govt and Political parties on various schemes, subsidies and freebies.

[@karthikkeyan3023]

Nice video sir

[@sangavi2712]

Thank you sir 👍

[@siranjjeevi5100]

Thanks a lot sir

[@jojosaiph7745]

Please don't monetize knowledge. Please keep offering such videos for free.

[@aruvaikaaran8174]

Why maximum countries use us dollar as a common currency for trade

[@aishwaryavijay9568]

How does interest rate benefits in forex swap?

[@labaikyamehdia.s809]

U are the great sir.

[@ADsh16]

Superb......

[@preetitiwari9194]

Very valuable analysis

[@mohitwatwani7679]

Thanks sir

[@sadaffwani4202]

thank you sir

[@haneefaayoob1720]

Awesome 👍. Thanks sir

[@publicservantofindia9191]

Sir please do something for Hindi medium

[@winvsdroid]

Helpful

[@waheesultan8681]

Was waiting this

[@monish992]

Thank you sir..😊

[@kulukh3428]

Thank you

[@pankajKumar-kd6iw]

We want to became an ias officer not a chief economist.........got it.......

[@venkataramanasadhu7465]

Super

[@shyamalsarkar3357]

thank u sir! plz explain d midtree issue

[@shiprapachauri6041]

Salute sir

[@dipujena7979]

nice

[@shivanishringarpure2814]

Thanku sir

[@zee-shanhussain1731]

Sir, please slow down ur speed
We r not getting u well

[@mihirpanchras6588]

Set the speed to 0.75

[@ajaysaxena1797]

Please upload video in Hindi also

[@AshishSingh-ug6mk]

great

[@KamalKumar-lv2tk]

Sir can you speak in hindi

[@NishaYadav-ou6um]

Sir please explain in hindi

[@ArjunSingh-ds1rd]

Forex swap

[@rahulsharmaudh]

Jai hind sir

[@eshanbhat5750]

Cartoon

[@narayanbarod8175]

Hindi medium m padao sir

[@vickyjatawat3493]

Ist

[@manishpandit5971]

hindi nai ate aapko...pl

[@sachchidanandyadav1235]

Thank you sir

[@jafeerkhan3417]

Thank you sir.