R5FX: rupee NDF volumes will grow after CNH-type setup
Offshore rupee trading will increase despite RBI’s move to encourage onshore trading, it is claimed
Indian rupee non-deliverable forward (NDF) volumes will continue to grow, despite the Reserve Bank of India’s (RBI) new rules aimed at moving offshore trading onshore, according to emerging market foreign exchange platform R5FX.
One of the reasons why offshore rupee trading will not decrease is that hedging can be achieved more cheaply via offshore products, says Jon Vollemaere, chief executive of R5FX: “If you’re a speculator, currently you take positions and risk effectively in USD, and those
More on Foreign Exchange
Average reported daily UK FX turnover hits record high
Daily turnover of $2,881bn in October 2019, up 2% from previous high of $2,821bn in April
PBoC injects 1.2 trillion yuan as markets plunge
Chinese central bank eases to support economy as coronavirus spreads; Q1 GDP growth could drop to 4%
Spot volumes on platforms resumed downward trend in 2019
But an uptick was seen in FX swaps and forwards submitted for settlement
PBoC extends market closure as coronavirus spreads rapidly
Chinese central bank extends interbank markets closure and vows to maintain ample liquidity
