RBI Tightens Grip on Rupee Amidst Market Fluctuations
The Reserve Bank of India has imposed new regulations on authorised dealers, prohibiting non-deliverable derivative contracts involving the rupee. This comes as the rupee experienced significant depreciation. The measures aim to stabilize the market by controlling the forex derivatives offered by authorized dealers and limiting their open positions.
- Country:
- India
The Reserve Bank of India (RBI) has announced stringent measures targeting authorised dealers amid the rupee's sharp depreciation.
In a late-evening notification, the central bank restricted authorised dealers, who are banks approved to handle foreign exchange, from offering non-deliverable derivative contracts in rupee to both resident and non-resident users.
This action arrives just days after the rupee crossed the crucial Rs 95 to a US dollar mark, with the RBI imposing a cap on net open positions to mitigate currency volatility.
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