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.
As per the latest RBI report highlights the major shift as Credit card transactions in…
Taiwan Travelogue wins the prize of the International Booker Prize 2026, put the Taiwan's storytelling,…
The Indian-origin tech veteran Soma Somasegar who had played the defining role to shape the…
India has started the major infrastructure activity on the Chenab River and approved the projects…
Kantha stitch artist Tripti Mukherjee set to receive the Padma Shri on May 25th, 2026.…
The state government of Delhi has announced plans to increase the annual income eligibility limit…