New Delhi, April 11 (IANS) The Reserve Bank of India injected a total liquidity of Rs 2.98 lakh crore in the market in 2018-19, one of its reports said on Thursday. From a daily net average surplus of Rs 27,928 crore during February 1-6, 2019, systemic liquidity moved into deficit during February 7-March 31, reflecting the build-up of government cash balances, the First Bi-monthly Monetary Policy Statement, 2019-20 stated.

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Currency in circulation expanded sharply in February-March. The liquidity needs of the system were met through injection of durable liquidity amounting to Rs 37,500 crore in February and Rs 25,000 crore in March through open market purchase operations (OMOs).

Consequently, total durable liquidity injected by the Reserve Bank through OMOs aggregated Rs 2,98,500 crore for 2018-19.

Liquidity injected under the LAF,(Liquidity Adjustment Facility) on an average daily net basis, was Rs 95,003 crore during February (February 7-28, 2019) and Rs 57,043 crore in March. The weighted average call rate (WACR) remained broadly aligned with the policy repo rate in February and March.A

Anticipating the seasonal tightening of liquidity end-March, the Reserve Bank conducted four longer term (tenor ranging between 14-day and 56- day) variable rate repo auctions during the month in addition to the regular 14-day variable rate term repo auctions.

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It also conducted long-term foreign exchange buy/sell swaps of US$ 5 billion for 3 years on March 26, 2019, thereby injecting durable liquidity of Rs 34,561 crore into the system, the statement said.