Authorised dealers may arrange foreign currency - rupee swaps between corporates who run long-term foreign currency exposures. Entities who do not have any forex exposure but are willing to assume a forex liability in lieu of their long term rupee liability may also become counter parties in the arrangement. As far as possible such transactions should be concluded on a matched basis. However, where this is not feasible authorised dealers may temporarily warehouse the swaps/absorb the mis-matches within their open position and gap limits.

NOTE : Authorised dealers should not allow the swap route to become a surrogate for forward contracts for those who do not qualify for forward cover under paragraph 3C.1.