The Reserve Bank of India eased a rule on banks’ purchases of foreign sovereign bonds, paving the way for the leaders to resume a profitable currency trade.
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The FX commerce will open opportunities for foreign banks to gain significant profits from the Indian market.
India’s central bank stated that foreign sovereign bonds would not belong to a regulatory cap that requires holdings of stocks unlisted in India to be 10% or less of the total non-statutory liquidity ratio portfolio.
A spokesman from the Reserve Bank of India did not respond to the report from Bloomberg.