The RBI will gradually remove the recent curbs it imposed in the forex market to stem speculative activity and excessive/ disruptive volatility in the rupee, with the first step being the partial roll-back of the measures.
“All that (curbs in the forex market) was done to deal with a temporary event that created large volatility in the market. Once that is taken care of, we should be back on track to what we do. It was a temporary measure and we (partially) rolled it back now,” said T Rabi Sankar, Deputy Governor, at the sidelines of an event to mark 25 years of the founding of CCIL.
The RBI on April 20 partially rolled back its measures that prevented Authorised Dealers (ADs) from offering foreign exchange derivative contract involving the Indian rupee. This came in the wake of hedging becoming difficult and dollar liquidity tightening.
With the rupee depreciating about 4 per cent since the West Asia war began on February 28, the RBI on March 28 asked ADs to ensure that their net open position – Indian rupee (NOP-INR) – in the onshore deliverable market is maintained within $100 million at the end of each business day. This measure continues to be in place.
Curb volatility
“The rupee’s movement — going up or down, which is a function of demand and supply, was not the consideration for the measures. The measures were brought in because the currency became very volatile at that point of time,” he said.
He emphasised that the RBI’s commitment to having a single global market for the dollar-rupee and for internationalisation of the rupee stands. These are long-term commitments.
He emphasised that any user anywhere in the world having an exposure on the rupee should be able to access any financial product that is available.
Published on April 22, 2026