<div>RBI on Wednesday, 28 August, opened a special window to help the three state-owned oil marketing companies needing about $8.5 billion every month meet their daily foreign exchange requirement in a bid to check the rupee's free fall.</div><div> </div><div>"On the basis of assessment of current market conditions, RBI has decided to open a forex swap window to meet the entire daily dollar requirements of three public sector oil marketing companies (IOC, HPCL and BPCL)," the central bank said in a statement.</div><div> </div><div>The PSU oil companies are the biggest buyers of dollars, requiring $8-8.5 billion every month for the import of an average 7.5 million tonnes of crude oil. The RBI decision is aimed at curbing volatility in the forex market.</div><div> </div><div>Under the swap facility, the RBI said, it will "sell/buy USD-INR forex swaps for fixed tenor with the oil marketing companies through a designated bank." </div><div> </div><div>The swap facility gets operationalised with immediate effect and will remain in place until further notice, the RBI said.</div><div> </div><div>The rupee today (28 Aug) collapsed to a lifetime low of 68.85 against the dollar and closed at 68.80, registering its biggest single-day loss of 256 paise, as global oil prices jumped, deepening concerns about the current account deficit and capital outflows.</div><div> </div><div>According to analysts, consistent dollar demand from banks and importers, mainly oil refiners, following higher crude oil prices, kept the rupee under pressure.</div><div> </div><div>India's oil imports during July were valued at $12.7 billion, which was 8 per cent lower than $13.8 billion of oil imports in the corresponding period a year earlier.</div><div> </div><div>During April-July, oil imports were valued at about $54.6 billion, which was 2.65 per cent higher than $53.2 billion in the corresponding period last year.</div><div> </div><div>(PTI)</div>
