RBI has expand Forex Trading by providing approval to banks to trade in Offshore Markets

by Sanjoy Bhowmik Digital Marketer

Indian banks will be allowed to trade in the offshore currency market in a step toward liberalizing foreign-exchange trading.

Banks in India that operate out of the International Financial Services Center will be allowed to participate in the so-called non-deliverable forwards market with effect from June 1, according to a statement from the Reserve Bank of India. The banks may operate via their local branches, foreign branches, or their international banking unit in IFSCs.

“This is a major move toward currency liberalization. We need to wait and see how the risk would be managed,” said Jayesh Mehta, treasurer at Bank of America Corp. in Mumbai. “We believe the risk management would be done possibly through the international banking units.”

Where average daily volumes for the rupee in the U.K. increased from $34.5 billion to $46.8 billion in April. Whatever it will be a bring an incredible change in the economy in India.

In response, India has been moving to make its onshore market more attractive and preparing to replicate offshore centers in specially designated financial zones within the country. Also, authorities allow local banks to offer foreign-currency transactions outside during local market hours in January.

However, what do you think about this matter? I hope, who are from India are pretty much excited. Yes, it is! But also making money forex will not be easy though. You have to stick to a perfect strategy or better if you get VIP forex signals.

Best of Luck!