Re: [MTC Global] Currency Futures in BSE

Apart from the question of Virendra sir ,I also have one question for which I would also like to have your precious views.

Is our financial system strong and competent enough to absorb such market , for example RBI keeps on coming up with recommendation for the institutions to not to go for arbitrage (which they might use as a hedging technique) in the exchange market (like selling Rupee in India and buying dollar and doing the reverse in the unregulated markets (NDF) abroad like Singapore, as the impact tends to show on the spot market in India and further depreciates the rupee. Don't you think that before introduction of new markets we should first be focusing on the integration/consolidation  of the existing  financial system so that the business could be conducted properly (not much regulation from the central bank)

Is the timing correct?

Thanks 

Akash

With regards from..........

Akash Gulati

8370071479

On Mon, Dec 2, 2013 at 12:35 PM, Virendra Goel <goel.virendra@gmail.com> wrote:

This is a question to Dr. Das – how will it trigger the speculations and its adverse effects. In course of my business, I have seen colleagues entering into speculative buying and selling currencies and ultimately landing into huge losses that could not be recovered by the banks. Commodity exchanges were started for hedging but our  experience has shown that they have become centers of speculation or what we call in our language 'SATTA'.

Regards

Virendra Goel

 

 

 

From: join_mtc@googlegroups.com [mailto:join_mtc@googlegroups.com] On Behalf Of Tarun Das
Sent: Monday, December 02, 2013 11:52 AM
To: MTC Global
Subject: RE: [MTC Global] Currency Futures in BSE

 

I have not read the article. But, I welcome such derivatives of foreign exchange markets for India. In developed countries, currency futures is an important and common derivatives of foreign exchange  markets for active debt management. In a way it provides specified foreign exchange at an agreed exchange rate in future and could be beneficial for a debtor if the actual rate of depreciation happens to be lower than the agreed rate for currency futures. So there is no harm if such derivatives are developed for Indian borrowers of external loans denominated in foreign currency and for exporters and importers who resort to short term trade loans in foreign currency.

Dr. Tarun Das
World Bank Technical Adviser (Public Debt Management and Policy)
Deepening MTBF and Strengthening Financial Accountability Project
Ministry of Finance, Government of Bangladesh,
20th Floor, 6th Building, Bangladesh Secretariat, Dhaka.
Website: www.spemp.com/ www.mof.gov.bd/dmtbf

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Date: Mon, 2 Dec 2013 11:19:41 +0530
Subject: [MTC Global] Currency Futures in BSE
From: ekambarkodali@gmail.com
To: join_mtc@googlegroups.com

Hi All,

Hope you have seen the news article about introduction of Currency Futures trading in BSE the other day in Economic times.

What is your opinion on the same?

 

--
Ekambar Kodali
Pg. Mgr/Sr. Con/Arch
Worlds No. 1 IT Company
9966208523

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