# RBI expansion of NDF access to help manage Indian rupee volatility - analysts

> The Reserve Bank of India is expanding access to non-deliverable forward markets to manage rupee volatility. The article notes that during stress, offshore NDF rates can run above onshore rates, creating arbitrage and spilling offshore volatility onshore, as seen when the rupee hit a record low in October 2022.

- Date: 2023-04-06 · published 2023-04-06T12:00:00.000Z
- Category: policy · region India · magnitude low
- Page: https://feedsoft.ai/events/36667-rbi-expansion-of-ndf-access-to-help-manage-indian-rupee-volatility-analysts
- Commodities: [Indian Rupee (INR per USD)](https://feedsoft.ai/c/USDINR.md)

## Why it matters

The policy affects currency volatility rather than physical feed supply or demand, so its direct effect on feed commodity prices is minimal.

## Read by commodity

- USDINR: neutral

## Sources

- reuters.com: https://www.reuters.com/world/india/india-central-bank-permits-banks-offer-non-deliverable-fx-derivatives-resident-2023-04-06/

---
Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.