India’s central bank on Friday announced plans to sell government bonds worth 1 trillion rupees, or about $10.47 billion, in its first net bond sale in two years.
The Reserve Bank of India said it will sell bonds maturing between fiscal 2029 and fiscal 2032 as it moves to withdraw excess liquidity from the financial system.
The announcement came hours after RBI Governor said the central bank was considering various options to manage liquidity.
The RBI last conducted a net bond sale in September 2024. It had also carried out simultaneous purchases and sales of government securities in fiscal 2021 and 2022.
The move is expected to reduce liquidity in the banking system and could influence borrowing conditions and market interest rates.
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