According to a Reserve Bank of India (RBI) Working Paper, the optimal hedge ratio for the External Commercial Borrowings (ECBs) raised by firms in India is estimated at 63 per cent for the periods of high volatility in the foreign exchange (forex/FX) market. An optimal hedge ratio is a ratio that implies the percentage of total asset or liability exposure that an entity ought to hedge against exchange rate fluctuations.
Buy Prime Test Series for all Banking, SSC, Insurance & other exams
According to the Paper, domestic economic activity and movements in the exchange rate of the Indian rupee are the two major factors influencing the ECBs issuance. Depreciation of the Indian rupee has an adverse impact on the issuance of ECBs in the short as well as long run.
Shubman Gill, the new Test series captain of India, has added a stylish touch to…
Eureka Forbes Ltd, a well-known name in India's health and hygiene sector, has chosen popular…
Indian-American rapper and singer-songwriter Raja Kumari has made history by becoming the first Indian-origin musician…
Maharana Pratap Jayanti 2025 marks the 485th birth anniversary of one of India’s most iconic…
Bengaluru-based pet food food company Drools has officially become a unicorn (a startup valued at…
India’s aviation manufacturing capabilities are set to soar higher as Tata Advanced Systems Ltd (TASL)…