Finance Minister Nirmala Sitharaman launched Rupee-Dollar (INR-USD) Futures and Options contracts on two international exchanges at the GIFT International Financial Services Centre in Gandhinagar on Friday. The contracts were launched on BSE's India INX and NSE's NSE-IFSC exchanges.
Since the last decade, a significant percentage of India’s market share in financial services has moved to other international financial centers. Bringing this business to India will reportedly benefit the country in terms of economic activity and employment gains. Launching INR-USD contracts at the exchanges in GIFT-IFSC is a step in this direction. As per an official statement, the contracts will be available for all global participants from GIFT IFSC for 22 hours across all time zones.
As GIFT-IFSC provides an excellent business environment and competitive tax regime, the trading of INR-USD contracts is expected to bring volumes to India. This would also expand the global participation in India through IFSC and help in connecting India's IFSC internationally.
India's foreign exchange reserves increased by USD 1.622 million to USD 481.078 billion in the week to May 1, due to the rise in foreign currency assets, according to RBI data. In the previous week, the reserves had declined by USD 113 million to USD 479.455 billion.
The forex reserves had touched a life-time high of USD 487.23 billion in the week to March 6, after it rose by USD 5.69 billion. During FY20, the country's foreign exchange reserves had risen by almost USD 62 billion.
In the reporting week ended May 1, 2020, the foreign currency assets (FCA), a major component of the overall reserves, rose by USD 1.752 billion to USD 443.316 billion. Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound, and yen held in the foreign exchange reserves.
(With inputs from ANI)
(Image: PTI File Photo)