RBI asks banks to give client info on forex deals, positions

In light of ongoing pressures on the Indian rupee, the Reserve Bank of India (RBI) has requested banks to provide detailed information on foreign exchange transactions and positions. This move aims to uncover any significant bets against the rupee as it faces challenges from global economic factors, including geopolitical tensions and fluctuating commodity prices. Specifically, banks are asked to report client transactions exceeding $10 million, including the names of clients and the reasons for their dollar purchases or sales. Additionally, banks must disclose their open positions and overall trading activities in the inter-bank market. Analysts suggest that this data collection could help the RBI manage currency volatility and make informed decisions to stabilize the rupee. Over the past six months, the rupee has depreciated from approximately 88 to nearly 92 against the dollar, influenced by a combination of factors such as rising gold imports, the US-Iran conflict, and concerns over crude oil prices. While the RBI has intervened, it has allowed a gradual weakening of the rupee rather than defending a specific exchange rate level, particularly during a period of uncertainty surrounding the India-US trade agreement.