Exclusive: India's RBI asks banks to stop building positions in offshore market

The build-up of positions in this segment of the market is forcing the RBI to spend more reserves to defend the rupee, one of the bankers said.

The RBI had probably assessed that the NDF was "nullifying the impact of their intervention," and was increasing liquidity in the forward market, both of which it does not want. Anindya Banerjee, head of research -forex and interest rates at Kotak Securities, said. "When you arbitrage, you use dollar leverage and that, we think, has become a concern for the RBI," said Abheek Barua, an economist at HDFC Bank.

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

British bond market turmoil is sign of sickness growing in markets, says leading strategistThe stresses building in the U.K. bond market are a sign of growing problems more broadly in financial markets, according to a leading strategist. The sickness is GREED! How many steaks is 1 person going to eat at dinner? Stop feeding into the sickness
Source: MarketWatch - 🏆 3. / 97 Read more »

As bond yields spike, Bank of England widens U.K. market intervention in second effort this week to calm volatile marketsThe Bank of England announced it will include index-linked gilts in its market intervention, a second move to calm volatile markets. 'second effort this week' - and it's only Tuesday
Source: MarketWatch - 🏆 3. / 97 Read more »