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Banking > Advanced
Banking > Head Office > Forex
Operations
Forex Operations
At least, some customers of every Bank deal in foreign exchange. Some of them would need to buy foreign exchange to meet their import requirements while others would require to sell foreign exchange earned through export of good and services. The Bank acts as intermediary for both. But in the process, the Bank exposes itself to the risk of landing with idle foreign exchange. To avoid this, Bank runs foreign exchange treasury operations. The Bank goes for spot selling/buying with forward cover operations to match its foreign exchange holdings. Bank also has to comply with all the requirements stipulated by Reserve Bank of India/Ministry of Finance in respect of holding/dealing in foreign exchange.
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