00:00The Indian Reserve Bank will put a lot of cash in the market this year so that the global
00:09risk economy can be kept secure.
00:12According to a report by the news agency Bloomberg, RBI can now put a bond purchase in the financial
00:16year and 4 lakh crores through foreign currency swap, i.e. about 47 billion dollars in the
00:23system.
00:24According to a report, according to IDFC First Bank, in the first half of the year, up to
00:284.5 lakh crores of cash infusion can be done.
00:31So far, RBI has infused 80 billion dollars in cash, which is a record in itself.
00:37Now the biggest question is why is such a large amount necessary?
00:40Whenever there is a decrease in interest rates, it is necessary to have enough cash in the
00:46market to make it effective.
00:47Due to the new US tariff policy, there is a risk of increased pressure in Indian exports.
00:51In this case, increasing interest rates and increasing cash will give support to the Indian
00:55markets.
00:56RBI has made a decrease in rates for the first time in 5 years in February and now expects
01:01to reduce rates again on 9 April.
01:03IDFC First Bank's Chief Economist said that during the last few years, there was at least
01:082 lakh crores of extra cash in the market, which was the effect of the new policy.
01:13The pressure of dollar swap and cash is expected to mature by about 35 billion dollars in April-June.
01:20If RBI does not roll over them, there may be a shortage of cash in the system again.
01:24Meanwhile, Kotak Mahindra Bank's Chief Economist said that in order to keep RBI in a state of
01:29cash surplus, new forward swaps or open market operations can have to be done.
01:35On the bond market, last week, RBI announced the purchase of an extra 80,000 crores of
01:40bonds for April and shocked the market.
01:42As a result, the 10-year yield has fallen to 6.46%, which is the lowest level since January
01:492022.
01:50Numera Holdings expects the yield to fall further and reach 6.25%.
01:55If the cash situation in the system is known, then in January, there was a heavy shortage
01:59of cash in the banks.
02:00The system was in a loss of 3,30,000 crores, but now cash has come in surplus from fresh
02:05purchases.
02:06IDFC Bank has said that RBI's focus is now on keeping the system constantly full of cash.
02:12In the past few years, RBI has shown how RBI has increased or decreased cash through open
02:16market operations from time to time.
02:18In the financial year 2025, RBI is again going to add cash on a large scale.
02:23As you all know, on April 7, the market has seen a lot of decline.
02:29The biggest reason for this is Trump's tariff policy, which has also had a lot of impact
02:34on the Indian market.
02:36Meanwhile, RBI has decided to bring so much cash flow that the market can be a little
02:42stable.
02:43What is your opinion on this whole report?
02:45Give your opinion in the comment box and keep watching Good Returns for such updates.
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