RBI exempts bank swap deals from net unhedged FX exposure norm

Kolkata: The swap deals done by banks with the Reserve Bank of India for the money raised through foreign currency deposits, external commercial borrowings and overseas foreign currency borrowings will be excluded from their net unhedged overnight position in the foreign currency market.

This will benefit banks looking to raise foreign currency through these windows, people aware said.

The central bank in March capped banks' net open position in the onshore deliverable market at $100 million at the end of each business day to curb extreme volatility and speculative trading against the local currency.