Latest news with #ForeignExchange
News18
6 days ago
- Business
- News18
RBIs panel for continuation of WACR as operating target of monetary policy
Last Updated: Mumbai, Aug 6 (PTI) An RBI internal group has recommended continuation of overnight Weighted Average Call Rate (WACR) as the operating target of monetary policy. The group has also recommended to continue with the variable rate auction mechanism for repo and reverse repo operations of various tenors with the objective of maintaining the operating target rate at the policy rate. Report of the Internal Working Group (IWG) to review the extant Liquidity Management Framework, which has been in operation since February 2020, has been published on the RBI's website for stakeholders' comments till August 29. The 7-member IWG was headed by Deputy Governor Poonam Gupta. Under the existing Liquidity Management Framework (LMF), the WACR is the operating target of monetary policy. The objective of liquidity management operations is to align the target rate to the policy repo rate. 'The group recommends continuation of overnight Weighted Average Call Rate as the operating target. The Reserve Bank may, however, continue to keep track of rates in other overnight segments to ensure orderly evolution of money market rates and smoothen transmission," the report said. An effective LMF facilitates the maintenance of appropriate liquidity in the banking system and fosters money market development, the report said. Earlier in the day, Governor Sanjay Malhotra said the WACR is found to be highly correlated with other overnight money market rates (TREPS and Market Repo) in the collateralised segments. Further, WACR is also found to be effective in transmitting signals to other money market instruments across maturities, he said. The internal group has also suggested continuation of the existing corridor system with policy repo rate at the middle of the corridor. 'The corridor would remain symmetric, with SDF rate and MSF rate, which are 25 basis points away from the policy repo rate, acting as the lower and upper bounds of the corridor, respectively," the report said. The LAF under the current LMF is based on the corridor system, with the policy repo rate in the middle of the corridor, the Marginal Standing Facility (MSF) rate (25 basis points above the policy repo rate) as the ceiling and the Standing Deposit Facility (SDF) rate (25 basis points below the policy repo rate) as the floor. Further, to reduce uncertainty in the market about the tenor, quantum and timing of the repo/reverse repo operations, the group felt that it is desirable for the Reserve Bank to provide sufficient advance notice to market participants, at least by one day, while conducting any such liquidity operation. The panel noted that the set of instruments in the extant LMF, viz., Open Market Operations (OMOs), long-term VRR/VRRR operations and Foreign Exchange (FX) swap auctions, are sufficient for managing durable liquidity in the system and hence does not recommend any change at this stage. It also recommended the central bank to retain the extant daily minimum requirement of 90 per cent of the prescribed Cash Reserve Ratio (CRR). PTI NKD ANU view comments First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
United News of India
12-07-2025
- Business
- United News of India
Forex reserve witnesses a fall: RBI Weekly Statistical Supplement
New Delhi, July 12 (UNI) As per the report by the Reserve Bank of India (RBI) India's Forex Reserve fell to the mark of $ 699.74 billion. India's foreign exchange reserves refer to the assets controlled by the Reserve Bank of India in foreign currencies. Policymakers monitor these reserves to maintain smooth liquidity inside the domestic economy. While the news of slipping India's forex reserve didn't affect the market as it came after the record jump of last week. The RBI's weekly statement stressed the fall of foreign currency assets, which is the prime component of the Foreign Exchange Reserve. Foreign currency assets or FCA are the biggest component of a country's forex reserve, which is valued in dollars but also impacts the movements of other major currencies such as the British pound, Japanese yen, and euro. India's forex reserve continues to dominate the world currency despite the slight fall. It is credited to the policies of RBI to maintain volatile currencies and macroeconomic stability. Major market players are closely monitoring these reserves. UNI SAS PRS
Chicago Tribune
03-07-2025
- Business
- Chicago Tribune
Foreign Exchange opens brewpub, restaurant in downtown Aurora
After years of brewing and selling beer, the award-winning Foreign Exchange Brewing Company now has a physical location in downtown Aurora. While the company's beer is of course for sale on-site at the new location, and patrons can see the brewing area through windows in the seating area, the brewpub also serves food that fuses Mexican and Indian cuisine. But beyond that, owner Ricky Cervantes said he wants the newly-opened space to first and foremost be a community hub, a place where people can come with their family and friends. 'The reason we were able to succeed these last five years is by building community, and we hope to build a community here within Aurora, within downtown Aurora, and be a beacon for Aurora,' Cervantes said during an official grand opening ceremony on Wednesday. After the ceremony, Cervantes told The Beacon-News that it is exciting to be able to open up a brewery within a historic building in the town he grew up in. Plus, being able to contribute to the revitalization of downtown Aurora 'means the most to us,' he said. Ald. Jonathan Nunez, 4th Ward, said in a speech at the grand opening that he is glad to see someone who also grew up in Aurora stick around, reinvest in the community and 'offer to us what we have now in Foreign Exchange.' Those who haven't tried their products, Nunez said, are in for a treat. Foreign Exchange hopes to use its existing fan-base and following to bring more people from outside Aurora to discover or rediscover its downtown since it has changed so dramatically over the past decade, Cervantes said after the ceremony. And he is no stranger to downtown Aurora. In fact, Cervantes said it was at his apartment in Leland Tower where he first started brewing beer. What originally got Cervantes into brewing, he said, is just that he had a lot of fun ideas. He started brewing and bottling beer to share with friends, and then he started going to beer releases and sharing with other beer drinkers in the Chicago region. That built him a following, he said. But it wasn't until he did a large-scale batch with the help of the former Oswego Brewing Company, and 450 people lined up to get some, that he realized, 'maybe I've got something here,' according to Cervantes. Foreign Exchange commercially launched the next year, he said, with distribution starting in February 2020. The company's beer is now distributed across Illinois, he said. 'I want to just thank everyone that's followed us over the years,' Cervantes said. 'People who have bought our beers off the shelf are the reason why we now have a brick and mortar, and we hope to continue growing for years to come.' Foreign Exchange's new physical location in Aurora currently serves 15 beers, according to the menu on the company's website. Of those, one is a 'guest tap' from Blind Corner Brewery and one, the Gratification, is the company's first from the new downtown brewery. Alongside the grand opening ribbon-cutting, the company also released its newest beer: the Barrel-aged Between Two Parallels. According to a Facebook post, it is made with a blend of imperial stouts that were aged between 25 and 31 months in Four Roses and Wild Turkey Distillery casks and conditioned on Madagascar vanilla and marshmallow. The restaurant and brewpub is located at 110 Cross St. in Aurora and is open 3 to 9 p.m. Monday to Wednesday, noon to 9 p.m. on Thursday, noon to 11 p.m. on Friday and Saturday and noon to 7 p.m. on Sunday.
Al Arabiya
21-06-2025
- Business
- Al Arabiya
Taiwan central bank says US debt rising too fast may impact trust in Treasuries
Taiwan's central bank governor warned on Saturday that rapidly rising US debt could be 'unfavorable' to the outlook for US Treasuries and that US President Donald Trump's trade policies have made investors cautious. Taiwan's $593 billion in foreign exchange reserves are more than 80 percent made up of US Treasury bonds, according to the central bank, which said earlier this month that Treasuries were 'sound' and still favored by investors. It added there were no worries about the dollar's position as the leading international reserve currency. Governor Yang Chin-long, in a speech posted on the central bank's website, said Trump's repeated criticisms of the US Federal Reserve's monetary policy have caused concerns about its independence. 'In addition, Trump 2.0's trade policy has made investors hesitant about holding US Treasury bonds; Trump's budget, the 'One Big Beautiful Bill Act,' may cause US debt to expand too quickly, which is unfavorable to the outlook for US sovereign debt,' he said. 'All of these have had a significant impact on the international monetary system centered on the US dollar and based on US creditworthiness.' Trump's sweeping tax-cut and spending bill is the centerpiece of his domestic agenda. The bill would lead to a larger-than-expected $2.8 trillion increase in the federal deficit over the decade, despite a boost to US economic output, the nonpartisan Congressional Budget Office projected on Tuesday. Trump, in his first few weeks in office, also announced sweeping tariffs on a broad swathe of countries and trading partners, including Taiwan, only to pause them for 90 days in April to allow for talks to take place. Yang said Trump had been hoping the tariffs could resolve the US trade deficit. 'However, the tariff policy not only fails to solve the structural problems, it will also impact the US economy, and threaten to further affect the outlook for global trade and the economy.'
Business Standard
10-06-2025
- Business
- Business Standard
Government notifies SEZ reforms to boost Semiconductor and Electronics component manufacturing
The Union government has introduced pioneering reforms in the Special Economic Zones (SEZ) rules to address the specialized needs of semiconductor and electronics component manufacturing sectors. Since manufacturing in these sectors is highly capital intensive, import dependent and involve longer gestation periods before turning profitable, rule amendments have been carried out to promote pioneering investments and boost manufacturing in these high technology sectors. After amendments in Rule 5 of SEZ Rules, 2006, an SEZ set up exclusively for the manufacturing of semiconductors or electronic components will require a minimum contiguous land area of only 10 hectares, reduced from the earlier requirement of 50 hectares. Further, amendment to Rule 7 of SEZ Rules, 2006, allows the Board of Approval for SEZs to relax the condition requiring SEZ land to be encumbrance-free in cases where it is mortgaged or leased to the Central or State Government or their authorized agencies. The amended Rule 53 will allow the value of goods received and supplied on a free-of-cost basis to be included in Net Foreign Exchange (NFE) calculations and assessed using applicable customs valuation rules. Moreover, amendments have been made in Rule 18 of the SEZ Rules to allow SEZ units in semiconductor as well as electronics component manufacturing sector to also supply domestically into the Domestic Tariff area as well after payment of applicable duties. The amendments will boost high-tech manufacturing, spur growth of semiconductor manufacturing ecosystem and create high skilled jobs in the country. These amendments have been notified by the Department of Commerce on 3rd June, 2025.
