Currency volatility is a now a part of the Indian firmament, requiring skillful risk management policies. However, one unexpected consequence is a rise in shared treasury services.
The RBI will let non-residents participate in the interest rate swap markets, introduce a mandatory loan component in working capital finance and allow rupee 'swaptions'
India's central bank follows up an initiative to develop financial markets by simplifying how non-resident companies with less than $ 30 million of exposure do their hedging.
The Reserve Bank of India has released futher guidelines around hedging, this time simplifying hedges under US$30 million in a move to improve access for SMEs.