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Delivering a keynote handle on ‘Self-Regulation in Financial Markets – Looking Back and Looking Ahead’ in Egypt, the deputy governor mentioned, “Going ahead, greater challenges will emerge as the markets become more developed and interconnected, and as the range of products expand.”
He mentioned new frontiers would additionally emerge as Indian banks develop their presence in offshore markets, non-resident participation in home markets grows, and as technological adjustments proceed to rework the way by which markets perform.
Foreign change market contributors should put together themselves to handle the adjustments and the related dangers, and the Foreign Exchange Dealers’ Association of India (FEDAI) should play a number one and constructive function in these endeavours, in response to a Reserve Bank of India assertion launched on Thursday.
“In a constantly evolving world where change is the only constant, the journey of the Indian foreign exchange market over the last few decades has been one of continuous development and innovation,” he mentioned on Sunday.
He mentioned the Reserve Bank stays dedicated to repeatedly transfer forward at a gradual tempo in step with the altering macro-financial setting — globally and domestically.
The deputy governor mentioned because the economics grows and turns into extra developed, the scope of participation in overseas change markets would change.
“With the increasing integration of the economy with the rest of the world, more and more entities are likely to, directly or indirectly, get exposed to foreign exchange risks. There are likely to be demands for permitting hedging of economic exposures,” the deputy The governor mentioned, including, “While this may be tricky given the current extent of capital account convertibility, the possibility of such hedging being permitted over a period of time as we progress further down the path of capital account convertibility needs to be carefully evaluated.” (ANI)
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