State oil firms now sourcing all dollars from market: RBI

MUMBAI Mon Dec 2, 2013 3:14pm IST

An employee fills an iconic yellow ambassador taxi with diesel at a fuel station in Kolkata June 24, 2011. REUTERS/Rupak De Chowdhuri/Files

An employee fills an iconic yellow ambassador taxi with diesel at a fuel station in Kolkata June 24, 2011.

Credit: Reuters/Rupak De Chowdhuri/Files

Related Topics

Election 2014

Election 2014

More than 814 million people — a number larger than the population of Europe — are eligible to vote in the world’s biggest democratic exercise.  Full Coverage 

MUMBAI (Reuters) - The Reserve Bank of India said on Monday state-run oil companies were now sourcing their entire dollar demand in markets, but added it would consider re-opening a special swap window on "rare days" of strong greenback demand.

The RBI also asked the oil marketing companies to smoothen their daily dollar demand so that upcoming bunched up demand was covered in advance in forward markets or on days with low dollar demand.

The central bank had opened a special forex swap window for oil marketing companies in late August, providing dollars via a forward swap agreement to reduce pressures on the rupee. Oil refiners are the single largest purchasers of dollars in markets.

The RBI added it would "keep all options open" regarding the settlement of the swaps, including the option of rupee settlements. Traders had worried about a surge in dollar demand from oil companies looking to repay their swap agreements.

The RBI added it has received $34 billion under its two forex swap windows, which are now closed. Any further funds raised under the foreign currency non-resident deposits or from banks' Tier I borrowings will flow directly into the market and not to the country's forex reserves.

The rupee trimmed gains and was trading at 62.22/23 to the dollar from 62.15 before the RBI statement.

(Reporting by Suvashree Dey Choudhury and Archana Narayanan; Editing by Rafael Nam)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Eyeing Role

Eyeing Role

Top economist Jagdish Bhagwati eyes role in Modi government  Full Article 

Election 2014

Election 2014

Breakingviews: Singh wasn’t king, Modi could be  Full Article 

Telecom Sector

Telecom Sector

Japan's NTT DoCoMo to exit India telecoms joint venture - sources  Full Article 

Next Nokia CEO

Next Nokia CEO

Nokia to name Rajeev Suri as next CEO on Tuesday - report  Full Article 

Conspiracy Lawsuit

Conspiracy Lawsuit

Apple, Google agree to pay over $300 million   Full Article 

Stock Split Trend

Stock Split Trend

Trend-setter Apple's stock split could bring out the copycats  Full Article 

Winning Start

Winning Start

Microsoft beats Wall Street on new CEO debut   Full Article 

Reuters India Mobile

Reuters India Mobile

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