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Jalan urges firms to hedge forex exposures
Mumbai, Aug 15: Reserve Bank of India Governor Bimal Jalan on Thursday told companies and other importers with foreign exchange liabilities to hedge their exposures against currency fluctuations.
Mumbai, Aug 15: Reserve Bank of India Governor Bimal Jalan on Thursday told companies and other importers with foreign exchange liabilities to hedge their exposures against currency fluctuations.
Many companies have left payables and foreign currency loans raised in recent months unhedged as the rupee has continued to appreciate against the dollar.
The rupee has appreciated 4.5 per cent to 45.9025/9125 per dollar already in 2003, after posting a 0.55 per cent rise in 2002, its first annual gain against the dollar in a decade.
"Exchange rate fluctuations among major currencies are now an everyday fact of life and it is important for all entities with foreign exchange exposures to resort to hedging with appropriate risk management of asset and liabilities," Jalan said.
Jalan, who is likely to leave office in the next few weeks for a seat in the upper house of parliament, was delivering the keynote address at the 14th National Assembly of the Forex Association of India.
Bureau Report
The rupee has appreciated 4.5 per cent to 45.9025/9125 per dollar already in 2003, after posting a 0.55 per cent rise in 2002, its first annual gain against the dollar in a decade.
"Exchange rate fluctuations among major currencies are now an everyday fact of life and it is important for all entities with foreign exchange exposures to resort to hedging with appropriate risk management of asset and liabilities," Jalan said.
Jalan, who is likely to leave office in the next few weeks for a seat in the upper house of parliament, was delivering the keynote address at the 14th National Assembly of the Forex Association of India.
Bureau Report