> *Last edited: 12-Nov-2024* 1. The most important aspect of regime for cross border transactions is exchange control or rather foreign exchange management. 2. ==The foreign exchange management policy have been guided by these 2 factors, in India, and indeed elsewhere in the world: 1. the quantity of foreign exchange available - *but managing the level of reserves is also as important as the level itself* 2. the [[Exchange Rate Policy|exchange rate]]. 3. The preamble of the FEMA, 1999 which very aptly summarises the philosophy behind how we regulate the cross border transactions. 1. It goes: “An Act to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments *(that is, all cross-border economic transactions-including both the current account and capital account transactions*) and for promoting the orderly development and maintenance of foreign exchange market in India. ## Exchange Rate 1. [[Exchange Rate Policy]] 2. A [[Liquidity and Exchange Rate|note]] on monetary approach to exchange rate. 3. Is there a [[External - Flexible Exchange Rate and Monetary Policy Independence - OPEN|monetary policy independence]] under a Flexible Exchange Rate Regime 4. [[Forex Markets|Forex Markets]]: 1. [[Currency Futures & Options]] 2. [[NDF - Non-deliverable Forwards (involving Rupee)]] 3. [[FX-Retail Platform]] 4. [[FCCB Crisis - 2008-12]] 5. [[FCCB Crisis - 2008-12]] 6. [[Why has Russia avoided a forex crisis despite low oil prices? OPEN]] 7. [[Forex Loan Prime Rate (LPR) of Chinese Banks]] 8. [[Forex - Devaluation of Egyptian Pound in 2016]] 9. [[Borrowing from IMF|Borrowing from IMF]] 10. [REER](REER.md) 5. [Capital Flows - Account & Management](Capital%20Flows%20-%20Account%20&%20Management.md) 6. [[Forex Market Interventions and Sterilisation|Forex market interventions and the subsequent liquidity management (sterilisation)]]. 1. [[Forex Intervention - Efficacy and Trade-offs in the Indian Experience - OPEN|Are the interventions effective?]] 1. [[Market Stabilisation Scheme (MSS), 2004]] 2. [[Forex Swaps]] 6. Crisis 1. [India's BoP Crisis of 1991](GoI_Budget%201992_The%20Payments%20Crisis-1991.pdf) 2. [[Measures to stabilise the exchange market|Measures]] by RBI and Govt. of India to support Rupee in times of crisis 3. [Forex-Special Swap Window - FCNR (B) Deposits (2013)](Forex-Special%20Swap%20Window%20-%20FCNR%20(B)%20Deposits%20(2013).md) 4. [Devaluation of Egyptian Pound in 2016](Forex%20-%20Devaluation%20of%20Egyptian%20Pound%20in%202016.md) 5. [Sanctions on Russian Central Bank (post 2022)](Sanctions%20on%20Russian%20Central%20Bank%20(post%202022).md) 6. [[GFC 2008, 2011 and the RBI OPEN]] ## Foreign exchange reserves 1. A [[Forex Reserves|note]] on Foreign exchange reserves 2. [Forex Reserves- Are they enough?](Forex%20Reserves-%20Are%20they%20enough?.md) 3. [WSS - Weekly Forex Reserves](WSS%20-%20Weekly%20Forex%20Reserves.md) 4. [Half-Yearly Report of Forex Reserves](Half-Yearly%20Report%20of%20Forex%20Reserves.md) 5. [[Bilateral, Multilateral Swaps, LoC, Liquidity Arrangements]] 1. [Borrowing from IMF](Borrowing%20from%20IMF.md) 2. [Forex Swaps](Forex%20Swaps.md) 3. [[SAARC Currency Swap Arrangement]] 4. [[Bilateral Swap Arrangement with Japan]] 5. [Sri Lanka's BoP Crisis - 2022](Sri%20Lanka's%20BoP%20Crisis%20-%202022.md) 6. [[Internationalisation of INR OPEN]] 1. [[Role of Dollar]] 2. [[Sri Lanka's BoP Crisis - 2022]] 7. [Non-Monetary Gold and the RBI](Non-Monetary%20Gold%20and%20the%20RBI.md) ## External Sector 1. [Link](External%20Sector.md) ## Rules, Regulations & others 1. A complete [list](https://www.rbi.org.in/Scripts/Fema.aspx) ## Data Releases The Reserve Bank adheres to the internationally best practices of measuring the reserves and data dissemination standards. The Reserve Bank has voluntarily opted for IMF’s Special Data Dissemination Standard (SDDS) that enjoins upon it adherence to internationally accepted best practices in this regard. 1. **Daily Data** 1. [Daily](https://www.rbi.org.in/scripts/referenceratearchive.aspx) reference rate for USD/INR, EURO/INR, GBP/INR and JPY/INR 2. Daily 1-month, 3-month and 6-month forward premia by FBIL 2. **Weekly Report** 1. [[WSS - Weekly Forex Reserves|WSS - Forex Reserves]] - *with a lag of one week* [(every Friday)](https://rbi.org.in/Scripts/BS_ViewWss.aspx) 2. [Advance Calendar](https://www.rbi.org.in/scripts/BS_NSDPDisplay.aspx) 3. **Monthly Report** ^9d8c15 1. Foreign Exchange Reserves in "External Sector" section of [Monthly Bulletin](https://rbi.org.in/Scripts/BS_ViewBulletin.aspx) 2. Sale/Purchase of U.S. Dollar by the RBI (in local and offshore spot, forwards, futures segment) in [Monthly Bulletin](https://rbi.org.in/Scripts/BS_ViewBulletin.aspx) 3. Maturity Breakdown (by Residual Maturity) of Outstanding Forwards of RBI (US$ Million) in [Monthly Bulletin](https://rbi.org.in/Scripts/BS_ViewBulletin.aspx) - *net forward liability position* 4. Nominal effective exchange rate (NEER) and real effective exchange rate (REER) – A 5-country and a 36-country trade based NEER and REER is published in the RBI Bulletin 5. International Reserves and Foreign Currency Liquidity Data Template [(IRFCL)](https://rbi.org.in/scripts/SDDS_ViewDetails.aspx?ID=7) - 1. The data _template_ is a prescribed category (or a part) of the _IMF's_ Special Data Dissemination Standard (_SDDS_). 2. India is among the 49 countries that have adopted (or subscribed to) the SDDS template for publication of detailed data on foreign exchange reserves. 3. It is released with a Lag of 1 month. So the release on end of Sept shows data as on end of Aug. It has a section "short-term net drains on foreign currency assets (nominal value)". 4. It is published on the last working day of the month following the reference month* 5. It has section "It has a section "short-term net drains on foreign currency assets (nominal value)" 7. Data on [External Commercial Borrowings (ECB)](https://rbi.org.in/Scripts/ECBView.aspx) is released on monthly basis 8. RBI's Monthly Bulletin - India’s Overall Balance of Payments (US $ Million) 4. **Quarterly Report** 1. [Accretion](https://rbi.org.in/Scripts/Publications.aspx?publication=Quarterly) to Foreign Exchange Reserves in India: Sources, Arbitrage and Costs - It is published with a 3-month lag, that is around the end of a quarter. 2. India's International Investment Position [(IIP)](https://rbi.org.in/scripts/Pr_DataRelease.aspx?SectionID=356&DateFilter=Year&Part=Annual) - released with a lag of 3 months. 3. India’s External Debt - released with a lag of 3 months 4. Secondary market - [CCIL Derivatives market quarterly](https://www.ccilindia.com/daily-market-analysis), [CCIL forex market quarterly](https://www.ccilindia.com/india-forex-market-quarterly) 5. [Balance of Payments](https://rbi.org.in/scripts/SDDS_ViewDetails.aspx?Id=5&IndexTitle=Balance%20of%20Payment) - Quarterly Reports 1. April-June - September 30 2. July-September - December 31 3. October-December - March 31, next year 4. January-March, 2026 - June 30 ![[RBI_Image_Balance of Payments (BoP) table from the Annual Report of 2024-25.png|450]] 5. **Half Yearly Report** 1. [[Half-Yearly Report of Forex Reserves|Link]] - They are being [prepared](https://rbi.org.in/Scripts/HalfYearlyPublications.aspx?head=Report%20on%20Foreign%20Exchange%20Reserves) with reference to the positions as of 31st March and 30th September each year, with a time lag of about 3 months. 6. **Annual Reports** 1. [[Annual Reports]] provide authentic version of RBI’s perspective as approved by its Board. In addition, the Reserve Bank has been disclosing its risk management policy with regard to foreign exchange reserves in this report. 2. [Annual Handbook of Statistics on the Indian Economy]([https://www.rbi.org.in/Scripts/Publications.aspx?publication=Annual](https://www.rbi.org.in/Scripts/Publications.aspx?publication=Annual)) 7. **Triennial (once in 3 years) Survey** 1. [Central bank survey of foreign exchange and derivatives market activity in BIS](https://rbi.org.in/Scripts/Bispublications.aspx) 2. [BIS](https://www.bis.org/statistics/rpfx25.htm# ) - Triennial Central Bank Survey of foreign exchange and Over-the-counter (OTC) derivatives markets in 2025 8. **Others:** These sources may contain information about the foreign exchange management. 1. Monetary Policy Statements by Governors 2. MPC minutes; 3. Speeches of Governors, Deputy Governors, Directors are important sources of policy analysis, actions and intentions. 4. Working Group /Committee Reports, 5. Technical/Discussion Papers 1. RBI Occasional Papers (RBIOP) - Biannually 2. RBI Working Papers since March 2011. 6. Memorial Lectures 7. Articles in the Monthly Bulletin 8. Monetary and Credit Information Review (Monthly) 9. **Historical Data** 1. Weekly, monthly and annual time series Reserve data are available at the [website](https://dbie.rbi.org.in) of Database on Indian Economy (DBIE), which is RBI's data warehouse. 10. **Calendar** ^c3ffd7 1. An advance release calendar (*Special Data Dissemination Standards (SDDS) Advance Release Calendar*) which provides one month ahead notice of the precise release dates is disseminated on the RBI's [website](https://rbi.org.in/scripts/PublicationsView.aspx?id=8326#7) 2. *What is SDSS here?* 1. India has adopted the SDDS template for publication of detailed data on forex reserves. It is a data template prescribed by IMF for disclosure of the International reserves and foreign currency liquidity, as part of the Special Data Dissemination Standards 2. India’s approach to reserve management closely follows international standards and codes, especially with regard to transparency, disclosure, accountability and data dissemination of foreign reserves. 3. Thus, India has also adopted the SDDS template for publication of detailed data on forex reserves. The data template provides some information on a number of parameters including currency composition, deployment of forex reserves and forward positions. 4. These data are made available on monthly basis in the RBI website as well as the country section of the IMF SDDS site, from the month of October, 2001. 11. Related Note - [Data Releases - External Sector](Data%20Releases%20-%20External%20Sector.md) ## FEMA Notifications 1. Exchange Control Manual - Publications/Occasional/[RBI Regulations under FEMA](https://www.rbi.org.in/Scripts/BS_ECMCategory.aspx) ## Speeches 1. A [[Speeches - Forex Market|list]] of speeches related to the topic of foreign exchange market. ## Related Notes 1. [[External Sector]] 2. [Data Releases - External Sector](Data%20Releases%20-%20External%20Sector.md) ## References ### [[Speeches & Media Interactions|Speeches]] 1. Subbarao, D. (2010, May 12). *Volatility in Capital Flows: Some Perspectives*. High-level Conference on ‘The International Monetary System’ jointly organised by the Swiss National Bank and the IMF, Zurich. [Link](https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=504). 2. Kanungo, B.P. (2019, Apr 25, 2019). *India’s growing significance in global arena. Is it Sustainable? Are we ready for it?* Reserve Bank of India.FEDAI Annual Conference at Beijing. [Link](https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=1074) ### [[Publications (Data Releases) & Research#Research|Research]] 1. RBI. (August, 1999). Asian Financial crisis. Issues and Lessons. RBI Staff Studies. [Link](https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/1999RBIStaffVol61999_August1999.PDF) | [[RBI_Research_RBI Staff Studies_199908_Asian Financial crisis-Issues and Lessons .pdf|pdf]] 2. Apr 23, 2024. India’s Foreign Exchange Reserves in High Volatility Episodes - An Empirical Assessment, by Saurabh Nath, Dipak R. Chaudhari, Vikram Rajput and Gaurav Tiwari. [Link](https://rbi.org.in/Scripts/BS_ViewBulletin.aspx?Id=22526) [pdf](RBI_Monthly_Bulletin_Article_20240423_India’s%20Foreign%20Exchange%20Reserves%20in%20High%20Volatility%20Episodes%20-%20An%20Empirical%20Assessment.pdf) ### Others 1. Rangarajan, C. (2015, March 13). _Issues in India’s external sector_ (5th Raja Chelliah Memorial Lecture, Raja Chelliah Memorial Lecture Series). National Institute of Public Finance and Policy (An autonomous research institute under the Ministry of Finance). [Link](https://www.nipfp.org.in/cms-index-page/publications/raja-chelliah-lectures/) | [pdf](NIPFP_20150313_Issues%20in%20India’s%20external%20sector_C%20Rangarajan.pdf)