After the rupee was impacted following unconfirmed reports that the Reserve Bank of India (RBI) is considering withdrawing the special dollar-swap window opened for oil marketing companies (OMCs), the central bank clarified that it is not considering any such move at present.
The three state-run oil marketing companies together need nearly $400 million every day, or $8-9 billion every month, to pay for their crude imports.
"The Reserve Bank clarifies that OMCs' swap window remains operational. Any tapering of the window, as and when it occurs, will be done in a calibrated manner," it said in a statement.
The
rupee gained 13 paise from Thursday's close, to 61.10, against the US dollar in early trade and slid to a low of 61.70 in the spot market after a media report said the government is considering closing the oil swap window. After the clarification, the rupee recouped the losses and was trading at 61.25 level at 1.55 pm.
The oil marketing companies are the biggest buyers of dollars, to meet their crude oil imports.
RBI had introduced this special swap window which takes away the oil marketeers' demand off the market.
"The Reserve Bank will undertake
sell/buy USD-INR forex swaps for fixed tenor with the oil marketing companies through a designated bank. The swap facility gets operationalised with immediate effect and will remain in place until further notice," the central bank had said in its August 28 statement.
The window was introduced after the rupee hit a life-time low of 68.85. The currency has, however, gained to stabilise at the 61-62 levels following some very unconventional
moves by the central bank and the government.
Experts say the swap window could be done away with by the central bank following signs of
stability in the currency.
PHOTO: Associated Press 
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