India’s central bank, called the Reserve Bank of India, has taken special steps to help the value of the rupee. The rupee has dropped more than 7% against the US dollar since the start of this year. Now, three big Indian oil companies—Indian Oil, Hindustan Petroleum, and Bharat Petroleum—can buy US dollars directly from the central bank instead of the usual currency market.

The main reason for this problem is that India buys a lot of oil from other countries. Oil is always paid for in US dollars. When oil prices rise, Indian oil companies need extra dollars, which can make the demand for dollars go up. This often causes the rupee to lose value quickly.

Because of the new system, the rupee became a little stronger right away. The central bank hopes this action will stop big changes in the rupee’s value and help people who are paying more for imported goods like fuel and electronics.