India's Central Bank Urged to Ease Forex Rules as $30 Billion Unwinding Looms

Indian lenders are urging the central bank to reconsider new foreign exchange trading rules aimed at stabilizing the rupee, warning that the measures could lead to significant losses. During discussions on March 28, banks sought a delay to the April 10 compliance deadline, as the regulations require them to unwind substantial existing positions. They highlighted that such a large-scale unwinding would trigger immense paper losses and proposed that the latest regulatory requirements should only apply to newly established positions.