RBI may soon introduce report on Currency Future

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Mumbai, Oct 24 (UNI) The Reserve Bank of India (RBI) may soon place a draft report on Currency Future in public domain for wider dissemination and feedback.

The RBI Deputy Governer, Shyamala Gopinath, in her keynote address at the Euromoney Inaugural India Derivatives here today, said that a working group on Currency Futures has had extensive consultations with a cross section of market participants including bankers associations, banks, brokers and exchanges. The group is in the process of finalizing its report.

Talking to reporters later, she said, ''Yet, the time-line for the report has not been decided. We are plannig to place report on the RBI's wesite for the wider accessibiliy and feedback from the public domain.'' Pointing out that the integration of the Indian economy with the rest of the world is growing and their is a continued development in the financial markets, the deputy governor said, ''There is a need to allow other hedging instruments to manage exchange risk like currency futures.'' India is not yet fully convertible on capital account, various options are available to deal with the issue of reconciling the regulatory framework in the cash and OTC forward market with the currency futures segment, Ms Gopinath remarked.

The international experience in this regard is mostly from OECD countries except for one single exception of South Africa which has very recently introduced domestic currency futures, she added.

UNI

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