RBI bans rebooking of forex derivative contracts after rupee fell
The Reserve Bank of India (RBI) just dropped new foreign exchange regulations to help stop the rupee from sliding and cut down on risky currency trading.
Companies can no longer rebook canceled foreign exchange derivative contracts, a move aimed at stopping hidden bets that were posing as hedging.
This comes after the rupee fell 4.5% since late February, hit by global tensions and big investor withdrawals.
RBI bars related party forex derivatives
Banks are now barred from making foreign exchange derivative deals with related parties, keeping things fairer and more transparent.
Experts like Kunal Sodhani from Shinhan Bank think these steps could cool off unnecessary dollar demand and bring some stability to the rupee.
Anindya Banerjee of Kotak Securities points out this builds on RBI's earlier limits for banks' market exposure.
All in all, RBI's asking for data on corporate-client positions too, hoping these moves will keep currency swings in check when global markets get rocky.