The recent $5 billion currency swap window opened by the Reserve Bank
of India will provide a much needed boost to liquidity in the market,
thereby contributing to revive the fortunes of capital- starved real
estate and housing sector .

After open market operations(OMO) by the RBI to manage liquidity, its
recent move  will help inject about 30000- 40000 crore of rupee
liquidity for 3 years through long- term foreign exchange buy/sell
swap via auction. Under this, the RBI will buy up to $ 5 billion from
the market and simultaneously sell it back . This will help make rupee
bonds more attractive for foreign investors and bring down interest
costs of raising money through ECB route.

Says Pradeep Aggarwal , Chairman, Signature Global, ” In the times of
funding squeeze from banks and NBFCs, overseas  borrowings at lower
interest rates will be a big boon for debt laden developers. The fresh
dose of liquidity injection will not only lead to cut in interest
rates but also help speed up transmission of rate cuts, thereby
boosting housing in general and the affordable housing in particular,
especially after affordable housing has got a big push through GST
rate cut.”