Despite many setbacks, the foreign exchange in India has been growing steadily and rapidly. Four hundred billion dollars is the annual turnover of the foreign currency exchange market in India. This sum does not include the transactions taken place between the banks, which are called as Inter-bank transactions.
Despite many setbacks, the foreign exchange in India has been growing steadily and rapidly. Four hundred billion dollars is the annual turnover of the foreign currency market in India. This sum does not include the transactions taken place between the banks, which are called as Inter-bank transactions. According to the report submitted by the RBI the monthly turnover during the year 2004 was around 40.5 billion dollars and the inter bank transactions were around 132 million dollars..
The currency swaps and swaps are made on the basis of spot and forward transactions. The buyers, sellers, intermediaries and agents form the basis of the Indian Foreign money exchange market. The commercial capital of the country is Mumbai; this is where the exchange market of India is run too. Cochin, Pondicherry, Chennai, Bangalore and Calcutta are the other places where exchange trading is done.
The communications of these foreign exchange trading centers were difficult due to lack of technology in the past. But now, with the help of technology, all the foreign money exchange trading centers are working on a collective basis. The Reserve Bank of India controls the foreign Exchange of the country through the Exchange Control Board. Some help is also provided by the Foreign currency Exchange Dealers Association (FEDA) in regulating the practices of foreign trade in India. The authorized dealers who are authorized by the RBI and other agents who will have to gain the same approval form RBI participate in the trade of Foreign Exchange in India.
