foreign exchange

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foreign exchange in india

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Foreign exchange : 

Foreign exchange Markets where money in one currency is exchanged for another

Evolution of foreign exchange market in India : 

Evolution of foreign exchange market in India Indian FX market is originated in 1978 It allow the banks to undertake intra-day trading in FX Exchange rate of the rupee is officially determined by RBI In 1994, unification of the exchange rate of rupee taken place based on the demand and supply in the foreign exchange

Slide 3: 

Appoint expert group(Sodhani Committee)on FX in design of FX market in India Bank has been accorded significant initiative and freedom to operate in the market

Market profile : 

Market profile Indian FX market is a transaction based market FX market is made up of authorized dealers, some intermediaries and end users The average turnover of the FX market increased in 2003-04, when compared to that of PY

Disclosure and Transparency Initiatives : 

Disclosure and Transparency Initiatives RBI has been transparent in data relating to FX market The movement in FX reserves of the RBI are published in Weekly Statistical Supplement RBI make public half yearly reports on management of FX reserves with the concurrence of govt. of India

Institutional development : 

Institutional development Vast size of the daily FX trading, combined with the global interdependencies of the foreign market involves high risk RBI establish Clearing Corporation of India Limited(CCIL) to mitigate risks in the Indian financial markets CCIL daily settles over 3500 deals covering an average gross volume of around $3.5 billion

CCIL : 

CCIL CCIL’s intermediation providers its member benefits such as improved efficiency, lower operational cost etc.. CCIL has improved operational efficiency with zero failure rate CCIL launched a Forex Trading Platform to facilitate US Dollar/Rupee deals by banks of india

FEDAI : 

FEDAI Foreign Exchange Dealers Association of india(FEDAI) as a self-regulatory organisation formed by authorized dealers The aim of the FEDAI is to enhance its catalytic role in the market development

Talks ahead : 

Talks ahead RBI will adopt approach characterised by gradualism in respect of future liberlisation of FX market