RBI to revise methodology for Computation of Reference rate
The rates will be polled from the select list of contributing banks at a randomly chosen five minute window between 1030 and 1230 hrs every week-day (excluding Saturdays), a RBI release said.
The reference rates for spot US Dollar and Euro against Rupee shall be disseminated up to the fourth decimal place.
The daily press release on RBI Reference Rate for US Dollar and Euro will be issued every week-day (excluding Saturdays) at 1300 hrs.
At present, RBI compiles and publishes on a daily basis reference rates for Spot USD-INR and Spot EUR-INR. Under the existing methodology, the rates are arrived at by averaging the mean of the bid/ offer rates polled from a few selectbanks around 12 noon every week-day (excluding Saturdays). The contributing banks are selected on the basis of their standing, market-share in the domestic foreign exchange market and representative character. The Reserve Bank periodically reviews the procedure for selecting the banks and the methodology of polling so as to ensure that the reference rate is a true reflection of the market activity. (UNI -Posted on / )
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