# Exclusive: India's RBI asks banks to stop building positions in offshore market

> The Reserve Bank of India asked local banks not to build additional positions in the non-deliverable forward market to arrest the rupee's slide. The report said the move could push offshore volatility into the local market. The measure is aimed at curbing speculative pressure on the currency.

- Date: 2022-10-13 · published 2022-10-13T12:00:00.000Z
- Category: policy · region India · magnitude medium
- Page: https://feedsoft.ai/events/39419-exclusive-india-s-rbi-asks-banks-to-stop-building-positions-in-offshore-market
- Commodities: [Indian Rupee (INR per USD)](https://feedsoft.ai/c/USDINR.md)

## Why it matters

Restricting offshore rupee positioning may reduce short-term depreciation pressure, which would ease the dollar cost of Indian imports. It also adds volatility risk for currency hedging by feed importers.

## Read by commodity

- USDINR: bearish ▼

## Sources

- reuters.com: https://www.reuters.com/business/finance/exclusive-indias-rbi-asks-banks-stop-building-positions-offshore-market-bankers-2022-10-13/

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