RBI issues final directions on hedging of foreign exchange risk

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Published: April 8, 2020 10:05:54 AM

RBI said the directions have been finalised based on the public comments received and the recommendations of the Task Force on Offshore Rupee Markets.

RBI, foreign exchange risk, forex risk hedging RBI directions, final RBI directionsThese directions will come into effect from June 1, the central bank said.

The Reserve Bank of India (RBI) on Tuesday released the final directions on hedging of foreign exchange risk, which aim to ease access to the domestic foreign exchange derivative markets. The directions include merging facilities for residents and non-residents into a single unified facility for all users and allowing users having valid exposures to hedge the same by using any available instrument.

Other directions include introducing facility to hedge anticipated exposures and simplifying procedures for authorised dealers to offer foreign exchange derivatives. RBI said the directions have been finalised based on the public comments received and the recommendations of the Task Force on Offshore Rupee Markets. These directions will come into effect from June 1, the central bank said.

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