Simplification of FOREX market crucial for promoting international trade and investments: PHD Chamber

While deliberating in the Open House Discussion on Impact of recent economic and regulatory developments on Indian forex market, President, PHD Chamber of Commerce and Industry, Mr. Anil Khaitan said here in a press statement that regulation of forex market is necessary in the interest of the people who are in forex market and running their businesses with foreign exchange.

Mr. Khaitan suggested that corporates must cover themselves and should not expose their companies to huge financial risks because of forex fluctuations.

Reforms in the foreign exchange market is a dynamic process and needs to be harmonised with the evolving macroeconomic environment.

PHD Chamber of Commerce and Industry organized an Open House Discussion on Impact of recent economic and regulatory developments on Indian forex market on 31st October 2017 at PHD House, New Delhi.

The eminent experts of the Open House Discussion were  Mr. R S Ratho, Chief General Manager, Financial Markets Operation Department, Reserve Bank of India, Mumbai and Mr. Vikas Jaiswal, Assistant General Manager, Foreign Exchange Department, Reserve Bank of India, New Delhi.

Photo caption from left to right: Mr. Anil Khaitan, President, PHD Chamber, Dr. S P Sharma, Chief Economist, PHD Chamber, Mr. D K Aggarwal, Vice President, PHD Chamber, Mr. R. S. Ratho, Chief General Manager, Financial Markets Operation Department, Reserve Bank of India, Mumbai, Mr. Vikas Jaiswal, Assistant General Manager, Foreign Exchange Department, Reserve Bank of India,New Delhi and Mr. Shyam Poddar, Managing Committee Member, PHD Chamber

Mr. D K Aggarwal, Vice President, PHD Chamber, Mr. Shyam Poddar, Managing Committee Member, PHD Chamber and Dr. S P Sharma, Chief Economist, PHD Chamber were also the part of discussions.

Deliberations on the newly introduced Global Foreign Exchange Code of Conduct were undertaken. The benefits of the Global Foreign Exchange Code were apprised to the participants for the effective functioning of the foreign exchange market to promote trade and investments globally.

Rationalization is a continuous process and it has to be tandem with the current environment, therefore, several endeavors have been taken from time to time at regulatory front for the facilitation of the stakeholders involved in the forex market.

All the experts unanimously felt that there is no one to one correlation in the real world and one factor does not influence the overall functioning of the forex market.

Going ahead, keeping in view lots of developments in foreign exchange market for the simplification of operating procedures and ease of hedging the risk, it is necessary that to minimize the volatility vis-à-vis global economic developments as forex market is crucial for promoting international trade and investments in the country.