Firms Forex Exposure Under Rbi Scanner

The Reserve Bank of India (RBI) has asked banks to collect every information regarding the unhedged exposures of corporates in the foreign exchange market. It has asked the banks to submit the data every year.

The exercise is aimed at managing the forex market in a better way. Normally, companies rush to cover their unhedged positions whenever the rupee is under attack, thereby triggering volatility in the market.

In a notification issued on July 31 to authorised forex dealers, the central bank said the unhedged exposures relating to corporates