Mumbai, May, 22: The Reserve Bank of India (RBI), the central bank of India, has asked Authorized Dealers category –I (AD-I) banks to bring down the Net Overnight Open Position Limit (NOOPL) at $ 100 million or 15 percent of the outstanding open interest, whichever is lower.
The foreign exchange regulator of the country has advised the AD Category- I banks to bring down their NOOPL positions to the above limits within June 30, 2012.
As Indian Rupee has made another low by reaching at Rs 55.06 per dollar has forced RBI to control the open market position.
The current NOOPL of the banks as applicable to the positions involving Rupee as one of the currencies shall not include the positions undertaken in the Currency Futures/Options segment in the exchanges.
The positions in the exchanges (both Futures and Options) cannot be netted /offset by undertaking positions in the OTC market and vice-versa. The positions initiated in the exchanges shall be liquidated /closed in the exchanges only.
In view of the recent developments in the foreign exchange market, until further review, it has been decided to continue this regulation. The current slide in rupee is contributed by strong demand of dollar by PSU to offset overseas loan and import bill.
Mumbai, May, 22: The Reserve Bank of India (RBI), the central bank of India, has asked Authorized Dealers category –I (AD-I) banks to bring down the Net Overnight Open Position Limit (NOOPL) at $ 100 million or 15 percent of the outstanding open interest, whichever is lower.
The foreign exchange regulator of the country has advised the AD Category- I banks to bring down their NOOPL positions to the above limits within June 30, 2012.
As Indian Rupee has made another low by reaching at Rs 55.06 per dollar has forced RBI to control the open market position.
The current NOOPL of the banks as applicable to the positions involving Rupee as one of the currencies shall not include the positions undertaken in the Currency Futures/Options segment in the exchanges.
The positions in the exchanges (both Futures and Options) cannot be netted /offset by undertaking positions in the OTC market and vice-versa. The positions initiated in the exchanges shall be liquidated /closed in the exchanges only.
In view of the recent developments in the foreign exchange market, until further review, it has been decided to continue this regulation. The current slide in rupee is contributed by strong demand of dollar by PSU to offset overseas loan and import bill.
RBI may come up with new route for oil majors to ease the pressure from OTC market. It may make alternative for oil majors and PSU firms to arrange dollar.
All authorized dealer banks and authorized banks may bring the contents of this circular to the notice of their constituents and customers concerned.
