The Reserve Bank of India (RBI) has formed a task force on the offshore rupee market. It will be headed by former Deputy Governor Usha Thorat and will recommend steps for ensuring the stability of the currency.
“The task force shall examine the issues relating to the offshore rupee markets in depth and recommend appropriate policy measures that also factor in the requirement of ensuring the stability of the external value of the rupee,” the central bank said.
The committee would submit its report by the end of June 2019.
The task force will assess the causes behind the development of the offshore rupee market, and study the effects on exchange rate and market liquidity in the domestic market.
It would also recommend measures to address concerns arising out of offshore rupee trading and propose measures to generate incentives for non-residents to access the domestic market..