Govt on Friday took a major decision on financial matters. Rupee-Dollar F&O contracts launched on BSE, NSE amid this coronavirus recession. This is aimed at providing better option for businesses to secure foreign currency payins and payouts. Rupee-Dollar (INR-USD) Futures and Options contracts are now made available on two international exchanges at the GIFT International Financial Services Centre in Gandhinagar on Friday. Finance Minister Nirmala Sitharaman launched Rupee-Dollar (INR-USD) Futures and Options contracts on two international exchanges at the GIFT International Financial Services Centre in Gandhinagar on Friday. The contracts were launched on BSE’s India INX and NSE’s NSE-IFSC exchanges.
Since the last decade, India’s considerable market share in financial services has moved to other international financial centers. Bringing this business to India may benefit the country in terms of economic activity and employment generation. Launching INR-USD contracts at the exchanges in GIFT-IFSC is a step to make INR a fully convertible currency. As per an official statement, the contracts will be available for all global participants from GIFT IFSC for 22 hours across all time zones.
GIFT-IFSC provides an excellent business environment. The trading of INR-USD contracts is expected to bring business volumes to India. This would also expand the INR in terms of global participation through IFSC and help in connecting India’s IFSC internationally.