 "RBI, RESERVE BANK OF INDIA, CENTRAL BANK")
The Reserve Bank of India (RBI) on Friday proposed the introduction of hedging for ‘anticipated exposure’ of the foreign currency debt, while merging the facilities for residents and non-residents into a unified facility for all users.
Hedging can be done using any available instruments.
An anticipated exposure is having an exchange rate on current and capital account transactions, which are expected to be entered into in the future, the RBI said.
A year ago, the central bank had increased the limit of buying currency derivatives to up to $100 million or equivalent, without any underlying exposure, from $15 million earlier.
