India To Share US Dollar-Rupee Rates With Overseas Exchanges On A Daily Basis

India will soon have to decide on whether to officially share the US dollar-rupee reference rates with overseas exchanges, fund houses, corporates, and banks. Currently, only registered users can access the reference rate on the same day. The reference rate which is freely available on the Financial Benchmark India Pvt Ltd. (FBIL) website is a day old. Though anyone can obtain the current rate from Reuters, using the rate without FBIL’s approval would be construed as an irregular practice. The FBIL, mandated by the Reserve Bank of India, is the independent benchmark administrator for interest and foreign exchange rates. The agency authorised to set the benchmark exchange rate has recently started announcing the rate with a day’s lag – allowing only registered users to access information on the same day.

The question now is, whether FBIL is willing to give foreign exchanges like DGCX (Dubai Gold & Commodities Exchange) and SGX (Singapore Exchange) access to the reference rate. These exchanges have been in communication with the FBIL with regards to registering for the reference rate. However, FBIL officials have still not given an affirmative answer on whether the agency would give overseas institutions access to the daily reference rate.

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