How the RBI’s forex risk reserve changes hedge pricing, why bank charges matter and what could happen if importers leave currency risks unhedged
Anil Katia
October 12, 2026 at 4:18 AM IST
istock.com
The RBI’s China-style reserve rule seeks to slow dollar buying, but lower forward premiums may come at the cost of leaving importers less hedged.
BasisPoint Groupthink
October 12, 2026 at 4:09 AM IST
The RBI’s curbs could punish genuine hedgers without addressing the outflows weakening the rupee or restoring confidence in the policy framework.
V Thiagarajan
October 12, 2026 at 3:57 AM IST