The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Foreign Exchange

RBI to allow futures

The Reserve Bank of India (RBI) published its Report of the Internal Working Group

On Currency Futures this week. In a nutshell, the central bank says it will allow the introduction of currency futures based on the rupee (INR).

“In sum, as the Indian economy becomes more open to the forces of globalization, the liberalization in the currency market segment with appropriate checks and balances and adequate regulations with a focus on implementation and supervision would help the Reserve Bank to conduct its monetary policy in a more flexible manner. The argument for going ahead with a currency futures market is that it provides an additional instrument in the market and enables participants to manage their risks prudently thereby contributing to smooth functioning of the markets. At the same time, it generally facilitates the conduct of policy and not necessarily impedes it, though the risks from dollarization and increased exchange rate volatility could arise. If currency futures add to the degree of dollarization in the economy, the risks in the form of exchange rate volatility would also grow,” the RBI writes.

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to and analysis and receive expertly-curated updates direct to your inbox.


Already a user?

Login now


We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree