In the daily statement on money market operations issued by the Reserve Bank of India (RBI), the swaps are now shown as ‘refinance under the forex swaps’. In fact, till a few days ago, it was called just ‘refinance’. I do not understand the appropriateness of the term ‘refinance’, which means an advance to a bank by way of supplementing resources when it issues a loan in a desired direction. Cannot the RBI just call it ‘forex swaps’ to avoid confusion? Secondly, the amount is indicated in rupees. It changes daily due to the variations in exchange rate. It would be helpful for analysts if the RBI indicates the dollar amount also along with the underlying exchange rate, which seems to be the Reference Rate announced by the bank.
- A.Seshan, Mumbai (HBL)
No comments:
Post a Comment