Reserve Bank of India issues consolidated guidelines on unhedged foreign currency exposure
India TV NewsHighlights Reserve Bank of India revises rules on foreign currency exposure of banks on October 11 RBI modified, consolidated guidelines for banks on unhedged foreign currency exposures RBI said a comprehensive review of extant guidelines has been undertaken Reserve Bank of India news : The Reserve Bank of India on Tuesday modified and consolidated guidelines for banks on unhedged foreign currency exposures of any entity to prevent losses due to heightened volatility in the forex market. The RBI has, from time to time, issued several guidelines, instructions and directives to the banks on Unhedged Foreign Currency Exposure of the entities, which have borrowed from banks. In an explanatory note, the RBI said unhedged foreign currency exposure of any entity is an area of concern not only for the individual entity but also for the entire financial system. Entities which do not hedge their foreign currency exposure can incur significant losses during a period of heightened volatility in foreign exchange rates.
History of this topic
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