The Reserve Bank of India (RBI) has decided to shorten trading hours for foreign exchange and money markets products in the light of challenges posed by lockdown imposed to curb the spread of coronavirus (Covid-19).
The shortened hours, from 10 am to 2 pm, will be in place from April 7-17. “The unprecedented situation created by the Covid-19 outbreak has necessitated lockdowns, social distancing, restrictions on movement of people and non-essential activities, work from home arrangements and business continuity plans,” the RBI said.
According to the RBI, the resultant dislocations have adversely impacted the functioning of financial markets. “The thinning out of activity is impacting market liquidity and increasing volatility in financial prices,” the RBI said.
The new hours will be applicable to call/term money, market repo in g-secs, tri-party repo in g-secs, CP and certificates of deposit, repo in corporate bonds, foreign currency and rupee trades.
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