- News>
- Markets
RBI to intervene in exchange-traded currency market, if required
The Reserve Bank on Wednesday said it will intervene in the exchange-traded currency derivatives (ETCD) market, if required, and the related data will be published in monthly bulletins.
Mumbai: The Reserve Bank on Wednesday said it will intervene in the exchange-traded currency derivatives (ETCD) market, if required, and the related data will be published in monthly bulletins.
RBI intervenes in the forex market as and when required in order to manage excessive volatility and maintain orderly conditions in the market.
"As a further measure, it has been decided to intervene in the ETCD segment, if required," RBI said in a statement.
The data for ETCD intervention will be published in the RBI monthly bulletin as in the case of over-the-counter (OTC) management, it added further.
Earlier in March this year, RBI had relaxed norms in this segment by raising the limit for domestic entities and foreign portfolio investors (FPIs).
It had also allowed an aggregate limit of USD 5 million equivalent per exchange.
The rules were relaxed in the ETCD market so as to bring it on par with OTC markets and also provide greater flexibility to both FPIs and domestic participants.