Question
According to the RBI’s revised guidelines on hedging
foreign exchange risk, a user can enter into foreign exchange derivative contracts without underlying exposure within a prescribed limit. Which of the following best describes the documentation required for users seeking to take positions beyond USD 100 million?Solution
The circular "Risk Management and Inter-Bank Dealings – Hedging of Foreign Exchange Risk" requires users who take positions beyond USD 100 million to submit a quarterly risk exposure report to the RBI through their Authorized Dealer.
State true or false
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