Headline money market liquidity has averaged close to Rs 5.1 trillion in FY22 so far. In contrast, core liquidity (headline liquidity + government's cash balances with the central bank)
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Jul 29, 2021
QuantEco Shots Liquidity@10k
Headline money market liquidity has averaged close to Rs 5.1 trillion in FY22 so far. In contrast, core liquidity (headline liquidity + government’s cash balances with the central bank) has steadily increased from Rs 8 tn as of end FY21 to a new all-time high level of Rs 10 tn currently. Despite the drag from increase in demand for cash and higher CRR maintenance, the FYTD build-up in core liquidity has happened on account of RBI actions (OMO purchases, spot and forward FX interventions, and dividend pay-out to the GoI).