RBI Allows Residents to Conduct Forex Swaps With Multilateral Bodies

Mumbai: The Reserve Bank of India (RBI) has allowed domestic entities to conduct foreign currency-rupee swaps with multilateral agencies and allow hedging of loans.

These swap transactions would have a minimum tenor of three years, the central bank said in a circular on Thursday.

The RBI also said the Indian government needs to be a shareholding member at the multilateral or international financial institutions for the swap to go through.