RBI launches special dollar window for state oil firms as rupee weakens

The Reserve Bank of India disclosed a suite of measures aimed at stabilising the rupee, which has slipped close to its all-time low amid geopolitical tensions. Central to the plan is a special dollar window that will supply the entire daily dollar requirement of Indian Oil Corporation Ltd, Hindustan Petroleum Corporation Ltd and Bharat Petroleum Corporation Ltd, with transactions routed through appointed banks from Oct. 12 onward.

Concurrently, the RBI barred authorised dealers from rebooking any cancelled foreign-exchange derivative contracts and reduced the threshold for speculative positions without underlying exposure from $100 million to $5 million. It also introduced a Foreign Exchange Risk Reserve, obliging dealers to maintain a reserve equal to 20 % of the notional value of qualifying rupee-based derivative deals. These steps are intended to reinforce market discipline, improve risk management and preserve orderly conditions in the foreign-exchange market.