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Because RBI isn't eliminating India's demand for dollars. It's managing how that demand affects the market.
And that's an important distinction.
Managing currency pressure today and solving its underlying causes are two very different things.
#RBI#CrudeOil#Forex#USDINR
The rupee is under pressure. And RBI has just announced an interesting move to support it.
It's opening a special dollar window for India's three major oil companies.
But how does selling dollars to oil companies actually help the rupee?
Here's the connection π
Oil import karna band nahi hua. Dollar ki zaroorat bhi kam nahi hui. Sirf dollars ka source badla hai.
And RBI is using its reserves to make that possible.
So this measure may help stabilise the rupee, but it doesn't guarantee a stronger currency.