RBI shortens forex, money market trading hours amid coronavirus lockdown

The (RBI) said on Friday that bond and currency will operate between 10 am to 2 pm, instead of the usual 9 am to 5 pm, effective April 7 to 17, in view of the Coronavirus-related dislocations.

The normal timings of the are between 9 am and 5 pm, depending on the type of instrument being traded. For example, repo in government securities was available between 9 am and 2.30 pm, whereas repo in the corporate bonds segment used to close at 6 pm. Now everything will close by 2 pm.

In a notification on its website, the RBI said the Covid-19 outbreak has created an unprecedented situation and necessitated lockdowns, social distancing, restrictions on movement of people and non-essential activities, work from home arrangements and business continuity plans.

“The resultant dislocations have adversely impacted the functioning of financial Staff and IT resources have been severely affected, posing operational and logistic risks. The thinning out of activity is impacting market liquidity and increasing volatility of financial prices,” the central bank said. Therefore, to minimise these risks and to ensure that market participants maintain adequate checks and supervisory controls while optimising thin resources and ensuring safety of personnel, the central bank curtailed the market timings.

ALSO READ: Coronavirus lockdown to hurt finances of generators, discoms: Study

Market participants welcomed the move. Even as most work from home, seniors have to come to the trading floor even as Covid-infected cases rise in the financial capital Mumbai.

“The reduction in OTC (over the counter) timings will disappoint the speculators and also reduce the volumes. Reduction in volumes will impact the market liquidity and likely increase volatility keeping rupee on an edge,” said Rahul Gupta, head of research- currency, Emkay Global Financial Services.

may see RBI intervening and capping the volatility however, there is not much RBI can do. 76.80-76.85 will act as a crucial resistance with 75.40 in support.”

ALSO READ: Coronavirus LIVE: 336 new cases in 24 hours, death toll climbs to 56

The RBI assured that all regular banking services for customers, including RTGS, NEFT, e-kuber (bond trading platform) and other retail payments systems will continue to be available as per extant timings.

Source link

Free Course

"Double Your Traffic in 30 days" + Secret Bonus

valued at $299

This amazing course will teach you, step by step, how to double if not triple your traffic over the next 30 days.

100% Privacy. We will never spam you!