India bans banks from offshore rupee trading instruments
pre-market1 source ↓written by the desknot a recommendation
- offshore rupee market
- $149 billion-a-day
- currency positions
- $100 million
India has prohibited banks from offering non-deliverable derivative contracts, impacting a $149 billion-a-day offshore rupee market. This move aims to support the weakening currency and follows a cap on lenders’ daily currency positions at $100 million. The rupee surged the most in 12 years following the announcement, raising concerns about liquidity in currency markets.
Not investment advice. For informational purposes only.