RBI Governor Raghuram Rajan today said state-run oil marketing companies have about USD 7 billion in pending settlements after they availed of the central bank's special swap window to meet their dollar needs. "The net amount is less than USD 7 billion right now," he told analysts over a conference call after announcing the mid-quarter review of the monetary policy.
The total amount of oil swap which the RBI engaged in between August 28 and the first week of December was USD 12 billion, he said. The measures were initiated after the rupee touched a lifetime high of 68.85 to the dollar on August 28.
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As part of various steps, the RBI introduced the special window under which it met the dollar requirements of Indian Oil, Bharat Petroleum and Hindustan Petroleum by selling them dollars. The OMCs, which need around USD 8-9 billion a month, are supposed to pay back in rupees over the next six months.
The RBI encouraged the OMCs to gradually move into the open market for their dollar requirements and closed the special window earlier this month. "As and when the time comes, we will take a view as to how the repayment happens and how it will be settled through an exchange of rupee fund-based on the settlement amount," Rajan said today.
If necessary, the swap can also be rolled over and can be repaid if the market conditions permit it, he added.
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