Reserve Bank of India signals more measures to curb forex speculation

Reserve Bank of India: The Reserve Bank of India is India's central bank, responsible for monetary policy, regulating the banking system, and maintaining financial stability including management of the foreign exchange market. In the context of this news, the RBI under Governor Sanjay Malhotra has signaled it will consider additional steps to curb speculative forex trading while intervening directly in the currency market and implementing targeted measures such as a special dollar supply window for oil marketing companies and new requirements on derivatives. Regulation: The RBI has introduced restrictions on rebooking cancelled rupee-linked derivative contracts, reduced limits for trades without underlying exposure, and implemented a foreign exchange risk reserve requirement to discourage speculative bets while supporting genuine hedging. Intervention: Central bank market interventions combined with the new regulatory measures have helped drive recent gains in the Indian rupee.