To save the falling rupee, the Reserve Bank of India (RBI) will sell dollars to the government-owned oil marketing companies (OMCs) in the counry, said the RBI on August 28. Through a designated bank, the RBI will, with immediate effect, is to sell dollars to Indian Oil Corp (IOC), Hindustan Petroleum Corp (HPCL) and Bharat Petroleum Corp.
During the 2008 global financial crisis, the RBI opened such a window, although it had been widely expected to re-implement the measures after last month telling oil companies to buy dollars from a single bank.
In a series of extraordinary measures, undertaken by the RBI, these steps are the latest to combat the rupee fall of more than 20 per cent this year.
Government-owned companies are the biggest source of dollar demand in markets – worth $400 million to $500 million daily and the RBI asking them to go to a special window is meant to cut pressure on the rupee, which fell as much as 3.7 per cent to an all-time low of 68.85 on August 28, recording its biggest one-day fall in 18 years.
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