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OMCs to buy dollar from state-run banks

OMCs to buy dollar from state-run banks
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In order to contain volatility in rupee exchange rate, state-run oil marketing companies (OMCs) agreed to buy dollars for importing crude oil from a single public sector bank.

This follows the direction by Reserve Bank of India (RBI) to these companies to use a special window for buying dollars.

OMCs are the major buyers of US dollar in the foreign exchange market and creating a special window to meet their dollar demand would limit depreciation of rupee.

The rupee depreciated to a record 61.21 per dollar over concerns that the US Federal Reserve may taper its quantitative easing.

RBI and state-run OMCs have reportedly held discussion on this matter recently. Indian Oil Corporation will buy its monthly requirement of $3.8-4 billion dollars from State Bank of India.

Similarly, BPCL, HPCL and MRPL will buy their dollar requirement from a single bank, reports indicate.

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