RBI’s Approval To Hedge Gold At IFSC A Positive Move
The Reserve Bank of India has decided to allow resident entities in the country to hedge their gold price risk on recognised exchanges in the International Financial Services Centre (IFSC).
"The RBI's approval to hedge gold at IFSC is a positive move and a major enabler for gold importers and exporters using yellow metal as the primary raw material for production. This will help increase the price competitiveness of the Indian jewelry industry.
It will help players hedge their positions against price fluctuations and unfavourable currency movement. This will also lead to an increase in volumes and activities at IFSC," says Colin Shah, Founder and Managing Director of Kama Jewelry.