RBI Governor Shaktikanta Das (Photo: Bloomberg)
').insertAfter(".article-content__img");$(".article-content__img div").find('div').remove();
Indian Entities Can Hedge Gold Price Risk At IFSC, Says RBI Guv Das
Indian entities can hedge their exposure to gold price risk in overseas markets on recognised exchanges in the International Financial Services Centre, Gujarat, said RBI Governor Shaktikanta Das
Topics
Reserve Bank | Shaktikanta Das | Gold Prices
Indian entities can hedge their exposure to gold price risk in overseas markets on recognised exchanges in the International Financial Services Centre (IFSC), Gujarat, said RBI Governor Shaktikanta Das on Wednesday.
Announcing the Monetary Policy Committee's (MPC) decision to increase the repo rate by 35 basis points, Das said: "Resident entities in India are currently not permitted to hedge their exposure to gold price risk in overseas markets."
"With a view to providing greater flexibility to these entities to hedge the price risk of their gold exposures, resident entities will now be permitted to hedge their gold price risk on recognised exchanges in the IFSC. This measure will benefit importers/exporters of gold such as jewellers and industries which use gold as an intermediate or raw material," Das said.
Welcoming the decision Colin Shah, Managing Director, Kama Jewelry said: "The RBI's approval to hedge gold at IFSC is a positive move and a major enabler for gold importers and exporters using yellow metal as the primary raw material for production. This will help increase the price competitiveness of the Indian jewellery industry."
"It will help the players hedge their positions against price fluctuations and unfavourable currency movement. This will also lead to an increase in volumes and activities at IFSC," Shah added.
--IANS
vj/dpb
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Subscribe to Business Standard Premium
Exclusive Stories, Curated Newsletters, 26 years of Archives, E-paper, and more!
First Published: Wed, December 07 2022. 15:41 IST
RECENT NEWS
JPMorgan Deploys AI Chatbot To Revolutionize Research And Productivity
JPMorgan has deployed an AI-based research analyst chatbot to enhance productivity among its workforce, with approximate... Read more
Private Equity And Banks: The Complex Web Of Leverage
Private equity has emerged as a significant force in the global financial landscape, driving substantial growth and inve... Read more
Financial Watchdog Highlights Unresolved Vulnerabilities In Shadow Banking Sector
The world’s leading financial stability watchdog has issued a warning about the unresolved vulnerabilities within the ... Read more
JPMorgan And Small Caps Lead Market Rally: A Sign Of Economic Optimism
In a week marked by strong financial performance, JPMorgan Chase & Co. reported a 25% rise in profits, and US small-... Read more
Big Banks Vs. Regional Banks: The Battle For Market Share
The financial industry is a competitive landscape where big banks and regional banks vie for market share. Each type of ... Read more
The Evolution Of Philanthropic Advisory Services In Private Banks
The landscape of philanthropic advisory services provided by private banks has undergone a significant transformation. T... Read more