Curated by Vinod Kumar Jain & Amit Jain · All Frontier Global · free, no login
Indian exporters can hedge EUR/INR exposure using: (1) Forward contracts with Indian banks — lock in the EUR/INR rate for a future delivery date; (2) Cross-currency swap — exchange EUR receivables for INR at a fixed rate; (3) Options — buy the right (not obligation) to exchange at a fixed rate. Under FEMA, Indian exporters can hedge up to 100% of contracted foreign currency exposures with RBI-authorised banks.
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