RBI launches ‘open-ended' measure to bolster weakening rupee
The Reserve Bank of India (RBI) today began a new measure to stem depreciation of the rupee that will see the central bank sell short-term government debt on a weekly basis for an unspecified period of time.
The central bank announced on Thursday that it would begin auctioning cash management bills (CMBs) – treasury bonds with maturities of up to 91 days at the longest – to a value of 220 billion rupees ($3.6 billion) on a weekly basis, to "contain volatility in the foreign exchange market".
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