Create Post
RBI Expansion Of NDF Access Will Facilitate Flexible Hedging: Analysts
IBUs were earlier permitted to transact in rupee NDF forex derivatives contracts with non-residents. They were earlier permitted to transact in rupee NDF forex derivatives contracts with non-residents and with other eligible banks. "The impact will be improved price discovery in India, bringing offshore volumes here and better opportunity for residents to hedge their books," a senior trader at a public sector bank, who did not want to be named because he is not authorized to speak to the media. Moreover, there will be less arbitrage between NDF and the onshore market, helping in managing the rupee, he added. "Currently for NDF, underlying is not needed," he said. Source: NDTV
- 3
- 0
- ₹0
