Economy
RBI Tightens Forex Derivative Rules as Rupee Approaches 97
The Indian Express1h
THE BRIEF
1
The Reserve Bank of India introduced strict regulations on the rupee derivatives market to curb speculation as the rupee neared 97 against the dollar and crude oil exceeded 100 dollars per barrel.
2
The central bank slashed the threshold for undertaking derivative transactions without establishing underlying exposure from 100 million dollars to 5 million dollars.
3
The RBI also banned the rebooking of cancelled rupee derivative contracts, required anti-double-hedging undertakings from banks, and introduced a 20 percent foreign exchange risk reserve.