In a bid to stabilise the rupee that fell to a record
low on Wednesday, the Reserve Bank of India has decided to open a forex swap window to meet the daily dollar requirements of three state-run oil marketing companies.
Under the swap facility, the Reserve Bank will undertake sell/buy of the dollar-rupee forex swaps for a fixed tenure with the three companies ó Indian Oil Corp, Hindustan Petroleum and Bharat Petroleum ó through a designated bank, the RBI said on Wednesday. The swap facility takes immediate effect and will remain in place until further notice, it said.
PSU oil companies, the biggest buyers of dollars, require over $ 8 billion every month for the import of an average 7.5 million tonnes of crude oil. A forex swap is a simultaneous purchase and sale of identical amounts of one currency for another with two different value dates.