NEWS： Central Bank of India Planning Foreign Exchange Swaps and Other Measures
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According to three officials with direct knowledge of the plan, the Bank of India should carry out at least one more rupee-to-dollar swap operation after the general election in order to support economic growth.
One of the officials said the central bank also planned to operate an open market of up to Rs 500 billion over the next two months to expand its quantitative easing program to stimulate the slowing economy.
These latest initiatives are expected to increase cash in the financial system and help push down interest rates.
"We want to make liquidity abundant, but we can't open liquidity gates. This must be done in a prudent way, "one of the officials said. Because of the sensitivity of the matter, the official did not want to be named.
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