Free Trial

RBI to Defer Decision on FX Derivatives, But May Be Only Temporary Reprieve

INDIA
  • The RBI are to defer the implementation of their FX derivatives rules to May 3rd, according to Bloomberg.
  • The step to defer the implementation of their FX derivatives rules refers to a building expectation that the central bank could look to squeeze INR speculative activity by forcing traders to uncover their underlying exposures and root out those using derivatives beyond hedging.
  • Expectations have been building for an RBI crackdown on this particular sector of the market and this headline may represent only a temporary one-month reprieve.
85 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  • The RBI are to defer the implementation of their FX derivatives rules to May 3rd, according to Bloomberg.
  • The step to defer the implementation of their FX derivatives rules refers to a building expectation that the central bank could look to squeeze INR speculative activity by forcing traders to uncover their underlying exposures and root out those using derivatives beyond hedging.
  • Expectations have been building for an RBI crackdown on this particular sector of the market and this headline may represent only a temporary one-month reprieve.