A Discussion On Forex Market History In India
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The foreign exchange currency trading in India is growing at a really good pace however it is said that the forex market is still in the early phase in India. Nevertheless there are already several big players in forex industry in india Indian forex market. Let us find out details on the forex market history in India to know more about Indian forex market.
The history of forex market in India owes its origin to an important decision taken by the Reserve Bank of India RBI in the year which allows banks to undertake forex industry in india trading in foreign currency exchange. The history of currency trading in India also clearly shows that during the initial period when these economic reforms started, the exchange rate of national currency i.
Moreover, there were some fairly significant restrictions on the current account transactions. Then again during early nineties, more economic reforms were introduced which forex industry in india the important two-step downward adjustment in the exchange forex industry in india of the Indian rupee in order to place it at a suitable level in line with the inflation differential so that the competitiveness in exports could be maintained.
With these economic reforms which resulted in the unification exchange rate of the rupee heralded the commencement of the new era of market determined forex currency rate regime of rupee in the Indian forex history which was based on the demand and supply principle in the forex market. Another landmark in Forex history of India came with the appointment of an Expert Group committee on Forex currency in This committee was made to study the forex market in detail so that step can be taken out to develop, deepen and widen the forex industry in india market in India.
The result of this exercise was that banks were significant freedom in many of its market operations related to like forex market development and liberalization.
The freedom was granted to forex industry in india in term of fixing their trading limits, allowed to borrow and invest funds in the overseas markets up to specified limits, accorded freedom to make use of derivative products for asset-liability management purposes. The corporate were granted the flexibility to book forward cover based on previous turnover and were given freedom to make use of financial instruments like interest rates and currency swaps in the international currency exchange market.
The other feature of forex history in India is that a large sum of foreign exchange in India came through the large Indian population working in foreign countries. However, the common man was not much interested in forex trading. National Stock Exchange of India popularly forex industry in india as NSE was the first recognized exchange in Indian forex history to launch forex currency futures trading in India. These currency futures are beneficial over overseas forex trading especially to comparatively small traders and retail investors.
Another important point to know is that before discussing the history of forex market in India, it is forex industry in india to know the central government of India has the powers to control transactions in foreign exchange and hence forex transactions in India are managed by the government authorities.
A Discussion On Forex Market History In India The foreign exchange currency trading in India is growing at a really good pace however it is said that the forex market is still in the early phase in India. Technical and Fundamental Analysis Forex: