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Market in liquidity defict mode in Q4

Market in liquidity defict mode in Q4

Sentinel Digital DeskBy : Sentinel Digital Desk

  |  22 Jun 2019 6:13 AM GMT

New Delhi: Market liquidity was in deficit mode in Q4 of last fiscal and RBI pumped in Rs 1.12 lakh crore in the period to sustain the market, according to the Finance Ministry quarterly data on public debt.

Market liquidity conditions, on an average basis, were mostly in a deficit mode during January-March 2019. The net average liquidity injection by the Reserve Bank under Liquidity Adjustment Facility (LAF) including MSF was Rs 52,364 crore during Q4 FY 19 (Rs 80,077.24 crore during Q3 FY 19).

The net average liquidity injection was to the tune of Rs 32,872 crore in January 2019, Rs 68,661 crore in February 2019 and Rs 55,559 crore in March 2019.

Based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward, the Reserve Bank conducted Open Market Operations (Purchases) for an aggregate amount of Rs 112,500 crore during January-March 2019. The Reserve Bank also injected rupee liquidity for longer duration through long-term USD/INR Buy/Sell swap auction amounting to USD 5.02 billion(Rs 3456,100 crore)on March 26, 2019, the data stated. (IANS)

Also Read: India loses fastest growing economy tag, Q4 GDP grew 5.8%

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