RBI opens swap facility to aid export credit

MUMBAI Mon Jan 14, 2013 10:54pm IST

Police guard the Reserve Bank of India building prior to the presentation of India's credit policy in Bombay April 29,2003. REUTERS/Roy Madhur/Files

Police guard the Reserve Bank of India building prior to the presentation of India's credit policy in Bombay April 29,2003.

Credit: Reuters/Roy Madhur/Files

Related Topics

MUMBAI (Reuters) - The Reserve Bank of India (RBI) has opened a special window to provide exporters with dollar credit by allowing banks to borrow the greenback from the central bank under a swap facility.

Banks will buy dollars from the RBI for tenures of 3 or 6 months, up to a combined total of $6.5 billion, with each having specific limit of how much it can borrow at a rate decided by the central bank.

This move aims to arrest a depreciation in the rupee, though traders do not expect a large amount of dollar inflow in the market immediately as there will be limits for each bank.

The rupee fell to lifetime low of 57.32 per dollar in late June on persistent concerns about the country's current account and fiscal deficits. However, the rupee has recovered to some extent since mid-September with the government pushing through ambitious reforms in retail and aviation.

The swap facility will be available to banks from January 21 till June 28, the RBI said.

(Reporting by Shamik Paul; Editing by Toby Chopra)

FILED UNDER:
  • Most Popular
  • Most Shared

DEFENCE

REUTERS SHOWCASE

Canonisation

Canonisation

Pope declares sainthood of two Indians, four Italians.  Full Article 

Stake Sale Strike

Stake Sale Strike

Coal India trade unions call off strike in victory for Modi.  Full Article 

Arms Purchase

Arms Purchase

India approves $2.6 bln mounted gun purchase - official.  Full Article 

Interview with Bulgari CEO

Interview: Bulgari CEO

Bulgari CEO: we shouldn’t have left India so we’re back  Full Article 

Formula One

Formula One

Hamilton takes second F1 title in style.  Full Article 

Available For Remake

Available For Remake

Bollywood finally wants to pay the price for remakes  Full Article 

Davis Cup

Davis Cup

Vintage Federer seals first Davis Cup for Switzerland.  Full Article 

Movie Review

Movie Review

"Happy Ending" is old wine in an older bottle  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage