The Reserve Bank of India, on Wedensday has opened a special Forex swap window, exclusively for the oil companies of India. The oil industry is the most affected sector and the oil companies are unable to purchase dollars, due to the non-availability of the dollars in the market. If they want to buy from outsiders, they need to pay higher money. This move by the RBI would be effective in keeping the volatile foreign exchange markets calm. Under the new program, The Central Bank would lend the dollars, equivalent to the Indian Rupees.
The oil marketing companies have to return the dollars, over a period of time. This plan would give the oil marketing companies to breathe and to continue the business. The very purpose of opening the forex swap window is to control the volatility of the Indian Rupee. Due to to this well planned move, the reserves of the country would not be affected.