Asian central banks act on liquidity shortages

Signs of heightening liquidity tensions in Asia emerged on Tuesday, with the Reserve Bank of India adding Rs20,000 crore ($4.16 billion) to its banking system and Bank Indonesia implementing measures to ease stress in foreign-currency markets. Bank Negara Malaysia promised to inject funds as necessary.

India injected the liquidity through a 14-day repo operation, charging its benchmark borrowing cost of 9% for the funds.

Bank Indonesia extended foreign-exchange swap terms from one week to a