Reserve Bank of India on 28 August 2013 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 decision was taken based on the assessment of current market conditions.
Under this Forex Swap Facility Reserve Bank will undertake sell/buy of USD-INR forex swaps for fixed tenor with the oil marketing companies through a designated bank. The swap facility gets operationalized with immediate effect and will remain in place until further notice.
The decision will help in reducing the volatility in the rupee market that has continuously fallen weak against dollar in past few months, reaching to the market value of 68.82 against US doallr.