The Reserve Bank of India (RBI) on Tuesday said it would conduct open market operation (OMO) of Government Securities (G-Sec) for an aggregate amount of Rs.12,000 crore.
This move of the RBI would help suck out liquidity in the system which was used to speculate in the foreign exchange market to amass U.S. dollar.
It would be conducted through “multi-security auction using the multiple price method,” RBI said a in a release here.
The central bank decided to conduct sale of government securities under OMO “as part of various measures announced on July 15 to address exchange rate volatility,” it added.
