Indirect policy instruments include sale of CBO CDs to absorb excess liquidity, repo operation to inject liquidity in domestic currency and swap and reverse swap
operation for lending in foreign currency to the domestic commercial banks as and when required.
Russia is in talks with Iran to set up a reverse swap
formula to convey its Southern oil to the Caspian Sea, so that the Russian tankers would be able to take it to nearby oil terminals.
48bn in reverse swap contracts on offer, the seventh reverse swap auction held by the central bank so far this year, reports Dow Jones.
At a reverse swap auction on February 10, the central bank has sold 86 percent of contracts offered, worth USD855.
Reverse swap auctions enable investors to exchange futures positions in US dollars for positions linked with domestic interest rates.
The required reserves ratio has been reduced by three percentage points to 5%, a US dollar reverse swap
facility introduced, and around USD2 billion made available for a lending scheme under which banks unable to secure foreign credit lines are able to borrow directly from thecentral bank.
The event has attracted huge media attention and is the first half of a series which will see the speedway riders travel to Donnington Park to carry out the reverse swap
later in the season.
5 percent of reverse swap contracts(C)2011 ENPublishing - http://www.
5 percent of reverse swap contracts offered at an auction on Tuesday, equal to USD1.
Global Banking News-January 17, 2011--Brazil central bank sells contracts in reverse swap
auction(C)2011 ENPublishing - http://www.
4 percent, using seven-day reverse swaps
, reports Bloomberg.