Sitharaman launches two exchanges to take on offshore currency market

India is taking its first baby steps to tackle a growing offshore market for its currency. Two exchanges — India International Exchange (IFSC) and NSE IFSC — on Friday began trading foreign-exchange settled rupee derivatives, part of a push to bring the market back home.

The launch comes amid the world’s most expansive coronavirus lockdown, which has crippled businesses and hurt trading volumes in the country’s financial markets. The timing may make it harder for the contracts to gain traction even as volumes in rupee trading overseas continue to grow.
 

“Volumes in an exchange typically take time to pick up,”