What changed
Previously, only USD-INR currency futures were allowed for residents. RBI has now added Euro-INR, GBP-INR, and JPY-INR contracts. Contract sizes are set at Euro 1000, GBP 1000, and JPY 100,000 respectively, with settlement prices based on RBI reference rates or press release exchange rates.
What it means for you
Banks and their customers can now hedge exposure to Euro, GBP, and JPY directly on exchanges, reducing reliance on over-the-counter products. This deepens the currency derivatives market and offers more flexibility for importers, exporters, and investors dealing in these currencies.
What you must do
- Update internal systems and product documentation to include the new currency pairs and contract specifications.
- Inform customers and constituents about the availability of Euro-INR, GBP-INR, and JPY-INR futures for hedging.
- Ensure compliance with the amended Currency Futures Directions, including settlement price rules for each pair.
Who it affects
AD Category-I banks, Resident investors and hedgers in currency futures
Which new currency pairs are now allowed for futures trading?
Euro-INR, GBP-INR, and JPY-INR, in addition to the existing USD-INR contracts.
What are the contract sizes for these new futures?
Euro 1000 for Euro-INR, GBP 1000 for GBP-INR, and JPY 100,000 for JPY-INR contracts.
How is the settlement price determined for these contracts?
For USD-INR and Euro-INR, it's the RBI Reference Rate. For GBP-INR and JPY-INR, it's the exchange rate published in RBI's press release on the last trading day.