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Page added on July 9, 2013
India asks oil companies to buy dollars from single bank
India’s central bank has asked state-run oil companies to buy dollars from a single bank, said a source privy to the advice from Reserve Bank of India, as the government struggles to stem the declining rupee.
The rupee fell to a record low of 61.21 against the dollar on Monday, exacerbating fears about the funding of the current account deficit and sending policy makers scrambling to find quick-fix solutions beyond sporadic interventions.
State-run Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp buy dollars for crude purchases through banks.
“We have been asked to buy dollars from a single bank. This order is for all IOC, HPCL and BPCL,” said a source at one of the three companies.
The Reserve Bank of India met oil retailers on Monday to discuss options, including accessing dollars at market rates from a special window and routing dollar sales through a single bank, to ease pressure on the rupee.
3 Comments on "India asks oil companies to buy dollars from single bank"
BillT on Tue, 9th Jul 2013 3:13 pm
The pain of the dying petro dollar becomes noticeable. Wait until it hits screeching, searing, pain …
bobinget on Tue, 9th Jul 2013 5:20 pm
Dying Perto Dollar indeed. This looks more like a troubled rupee.
Two good things are happening to USD. The first is obviously foreign expenditures for crude oil and natural gas are down.The reverse is also true for developing nations trying to improve domestic consumption of material goods. (cars, trucks)
The second, Not shipping plane after plane loads of actual cash to be dolled out to Iraqi and Afghan thieves. (at least OUR thieves spend most of their ill gotten gains rat cheer in the USA)
BillT on Wed, 10th Jul 2013 12:49 am
bobinget, I bet you would find that the real thieves, in this country, spend very little of it here. It is all off-shore where it is not available to the IRS. If they are smart enough to get it, they are smart enough to hide it.
The total is supposed to be somewhere around $14,000,000,000,000. Yes, 14 trillion.
You can be sure they have homes out of the country and probably in many countries. They will not be here when J6P finds out he has been screwed totally.