Currency Swap

India, Maldives ink pact for cross-border transactions in local currencies

The MoU was signed by Shaktikanta Das, governor, RBI, and Ahmed Munawar, governor, Maldives Monetary Authority

RBI, Maldives monetary authority sign $400 million currency swap agreement

This arrangement will remain in effect until June 18, 2027

RBI revises framework for currency swap arrangements with Saarc countries

Under the framework, the RBI will enter into bilateral swap agreements with SAARC central banks that wish to utilise the swap facility

Allow foreign currency transactions in India via RBI: ICT Chairman Kapila

Consultants and service providers have urged the government to enable direct foreign currency transactions within the country through RBI, bypassing the current practice of routing transactions via the US banking system. Intercontinental Consultants and Technocrats (ICT) Chairman K K Kapila said currently, even domestic transactions in the US dollar between entities within India necessitate routing through the US banking system, incurring transaction fees. "This practice results in substantial funds leaving our economy in the form of fees paid to American banks," Kapila added, who also heads Indian Road Federation (IRF). He emphasised that it is illogical that internal foreign currency transactions within India require routing through the US, resulting in unnecessary costs to our businesses and economy. According to Kapila, consultants and service providers emphasised the need for a streamlined approach where transactions involving foreign currencies like US dollars are facilitated

Dollar swap option returns to India after RBI rule change for lenders

The central bank, effective Friday, expanded the range of products banks can offer to eligible corporates, which included swaptions, or an option to enter into an interest rate swap

Maldives in discussion with India to pay in local currency for imports: Min

The Maldives is currently discussing with India if the island nation can make payments for its imports from the country in Maldivian Rufiyaa, a senior minister has said. A similar arrangement is also being worked out for imports of goods from China, Minister for Economic Development Mohamed Saeed said and noted that annually, Maldives imports goods worth USD 780 million and USD 720 million from India and China respectively. According to the news portal Edition.mv, Saeed was speaking at an event held on the island of Maavah during President Mohamed Muizzu's visit to Laamu Atoll ahead of parliamentary elections on April 21. He stated that if the ruling party were able to secure a majority in Parliament, they would be able to bring the dollar rate back down to official market values within approximately two years. Saeed said his party was now getting all signals that there was a possibility to make non-dollar payments for all of these massive import arrangements. International trade

Cenbank under Taliban control 'prohibits' online currency exchange

The prohibition of online currency exchanges has been put in place under the Taliban's supervisory and security administration, according to Khaama Press

Rupee gains for third straight trading session on foreign inflows

The rupee settled at Rs 82.76 per dollar, marking the highest since September 4, 2023, against the previous close of Rs 82.79

1-yr dollar/rupee fwd premia hit 11-week low as US rate cut seen delayed

RBI likely to take delivery of the dollar-rupee sell buy swap on March 11

RBI's $5 billion USD/INR swap expiry fuels dollar shortage concern

The Reserve Bank of India (RBI) had conducted a $5 billion sell/buy dollar/rupee swap last year. Under this swap, the RBI sold $5 billion to banks on April 28, 2022

RBI likely bought dollars in spot via PSBs, paid in far forwards: Traders

Two public sector banks were buying dollars, likely for the RBI, while a large private sector bank was on the bid on USD/INR for its importer clients, a currency trader said

India, UAE agree on trade settlement in local currencies to boost ties

India and the UAE on Saturday agreed to start trade settlement in their currencies and link the Indian Unified Payments Interface with the Gulf country's Instant Payment Platform (IPP) as Prime Minister Narendra Modi held comprehensive talks with UAE President Sheikh Mohamed bin Zayed Al Nahyan here. In his remarks after meeting the UAE President, Modi said India-UAE trade witnessed a 20 per cent increase since the signing of the Comprehensive Economic Partnership Agreement last year. Modi said the agreement signed on Saturday for trade settlement in the currencies of the two countries shows the strong economic cooperation and mutual trust between the two nations. "It is always gladdening to meet HH Sheikh Mohamed bin Zayed Al Nahyan. His energy and vision for development are admirable. We discussed the full range of India-UAE ties including ways to boost cultural and economic ties," Modi said on Twitter after the meeting. The agreement with the UAE on trade settlement in the ...

India, Tanzania started trade settlements in local currencies: Jaishankar

External Affairs Minister S Jaishankar on Saturday said that India and Tanzania have started trade settlements in local currencies and this new initiative will help in promoting commerce between the two countries. Addressing industry leaders at a function, the minister said India-Tanzania bilateral trade has seen very strong growth, and stood at USD 6.4 billion in 2022-23. "Now, bear in mind, this is not only a very substantial bilateral trade, but it's also actually a bilateral trade, which is getting increasingly balanced. Many new products are being added to the trade basket...India remains the biggest destination for Tanzanian exports," he said. There's also an issue which has been brought up from time to time, which is the possibility of trade settlements in our own currencies, Jaishankar said. "And I want to share with you that the India central bank has cleared such a possibility. So the three Indian banks, which are here, have that ability to do trade settlements in each ..

BRICS pitches for using local currencies in international transactions

The BRICS nations on Friday underlined the need for using local currencies in international trade and financial transactions besides committing themselves to supporting rule-based open and transparent global trade. A joint statement issued at the end of the meeting of the BRICS Ministers of Foreign Affairs and International Relations, also pressed for a robust Global Financial Safety Net with a quota-based and adequately resourced International Monetary Fund (IMF) at its centre. It further said the process of IMF governance reform under the 16th General Review of Quotas, including a new quota formula as a guide, should be completed by December 15, 2023. The joint statement titled 'The Cape of Good Hope', said ministers expressed their support for a free, open, transparent, inclusive, equitable, non-discriminatory and rules-based multilateral trading system with the World Trade Organization (WTO) at its core, with special and differential treatment (S&DT) for developing countries, .

RBI norms on unhedged Fx exposure unlikely to impact banks much

In June, the RBI had said that of the outstanding ECBs of $180 billion, 44 per cent was unhedged

TMS Ep252: Auto sector, NDTV acquisition, markets, currency swap

Has Indian auto sector entered the fast lane? Will NDTV turn out to be Adani's most challenging acquisition? Will FII flows reduce rate hike fears this week? What is a currency swap? All answers here

What is a currency swap?

India has extended the duration of the $400 million currency swap facility extended to Sri Lanka, which is in dire straits. But what exactly is currency swap? This report offers an insight

Govt may try new currency swap to help developing economies avert default

This is backed by trade in minerals, which is essential for India to build chip industry, expand renewable energy

Rupee depreciation against US dollar lower than other major currencies: CEA

CEA Nageswaran said that the depreciation of the rupee against the US dollar has been lower than other major global currencies such as the Euro, the British pound and the Japanese yen

Strength and opportunity: What rupee going 'international' will mean

The rupee is partially convertible. It attained current account convertibility in the early- through mid-1990s. This means the rupee can be converted to any foreign currency at existing market rates