Internationally, currency trading includes a large turnover of cash. Today, the worldwide market of Forex is estimated at about US $ 3 trillion according to the survey report of BIS Triennial. Current reports conclude that at present the turnover of Forex market is over four hundred billion dollar and the analysts think that we are in nascent phase of attaining the total extent of the inherent potential of trading. The irregular growth in trading market attributes to several factors, the initial contributing factor started in 1978 when RBI gave the banks an approval to start an trading in the overseas currency exchange. This particular step caused in the needed “square” or “near square” place to be compiled at the closing of the business regularly. In 1990, currency trading was exposed to several restrictions by RBI. However, an introduction of important economic reforms by government, like implementation of the policies of open market, offered the much offered significant boost for currency trading in the country.
As the next important step, government saw an appointment of a specialist committee for reviewing the position. This particular committee noticed into the introduction of Liberalized exchange rate system which was invented in 1992. This particular committee was made for studying the trading market in details so that the steps can be widened, deepened and developed in the trading market of India. As an effect of this particular exercise, trading of currency in the banks got an important boost and the banks also got a freedom to carry the currency or operations of Forex trading among themselves. A freedom offered here is concerned with the yielding banks the freedom of fixing the limits of trading and being permitted to exchange and invest in the foreign market up to specific limits.
Another important advancement in the trading market was started in 2008, when the derivatives of currency were supplemented to stage of the country’s largest trading exchange, known as NSE. In addition to the derivatives currency segments propelling Forex trading in India at par with worldwide trading exchange all around the world. It not only caused an important rise in a volume of trades being carried through the exchange but opened doors for corporation also. The newest addition to arm of trading currency on the Indian shores are various currency features and follows the implementation into the system of Forex trading since one year. Currency futures signifies a standard overseas exchange derivative contract which was traded on a documented overseas exchange to purchase or sell a currency on the specific date in the future.
I would want to tell my readers that however the invention of futures of currency was from the perspective of US-INR contract, having a look at the response of positive trade got from investors, other types of contracts like Pound INR and Yen-INR have been discovered as lately as in 2010. I would accomplish by telling that the currency trading is going to remain and golden age of exchange of currency on the Indian shores can be around a corner.