The Foreign Exchange Dealers Association of India (FEDAI) is an organization of banks dealing in foreign exchange in India. The Association was set up in 1958 with the objective of Regulating the foreign exchange business in India.
The Association provides guidance to its members on all aspects of foreign exchange dealing, and also helps them resolve any problems that may arise in the course of their business.
The Association also helps to promote the development of the foreign exchange market in India, and works closely with the Reserve Bank of India (RBI) on all matters relating to foreign exchange.
What is wash rate in forex?
The wash rate is the rate at which a currency is exchanged for another currency in the foreign exchange market. This rate is determined by the market forces of supply and demand for the two currencies. The wash rate can be affected by many factors, including economic indicators, political events, and central bank interventions.
Who regulates foreign exchange market in India?
The foreign exchange market in India is regulated by the Reserve Bank of India (RBI). The RBI is the country's central bank and is responsible for managing the Indian rupee. The RBI intervenes in the foreign exchange market in order to stabilize the currency and prevent it from becoming too volatile.
What is the interest prescribed by Fedai for delayed delivery in foreign exchange contract in interbank settlement?
The Federal Association of Interbank Settlements (FEDAI) is an organization that represents the interests of the Indian banking sector in foreign exchange transactions. FEDAI prescribes the rules and regulations governing foreign exchange transactions in India, including the interest rates that banks can charge for delayed delivery in foreign exchange contracts.
The interest rate that FEDAI prescribes for delayed delivery in foreign exchange contracts is known as the "FEDAI charges". The FEDAI charges are calculated on a monthly basis, and are based on the prevailing market interest rates in India at the time.
The FEDAI charges for delayed delivery in foreign exchange contracts are as follows:
For delays of up to 2 days: 0.50% per month
For delays of 2-7 days: 1.00% per month
For delays of 7-14 days: 1.50% per month
For delays of 14-21 days: 2.00% per month
For delays of 21-28 days: 2.50% per month
For delays of 28 days or more: 3.00% per month
The interest rates prescribed by FEDAI are subject to change from time to time, in line with changes in the market interest rates.
What is NTP as per Fedai rules?
The Federal Reserve Bank of New York (FRBNY) acts as the agent of the Federal Reserve System in conducting open market operations in the domestic securities market. The primary objective of the FRBNY's Open Market Trading Desk (the Desk) is to carry out the System Open Market Account (SOMA) policy directives of the Federal Open Market Committee (FOMC) with the objective of maintaining the health of the financial markets and fostering the implementation of monetary policy.
In order to carry out these objectives, the Desk engages in transactions in the U.S. Treasury, agency debt, and agency mortgage-backed securities markets. The Desk also manages the SOMA portfolio and conducts transactions in foreign currencies.
The Desk uses a number of tools to carry out its objectives, including:
-Repurchase agreements: The Desk conducts repurchase agreement (repo) operations to ensure that the federal funds rate remains at or near the target range set by the FOMC.
-System Open Market Account: The SOMA portfolio is the portfolio of U.S. Treasury securities, federal agency securities, and federal agency mortgage-backed securities that is owned by the Federal Reserve. The SOMA portfolio is managed by the Desk in accordance with the FOMC's directives.
-Federal funds rate: The federal funds rate is the interest rate at which depository institutions lend balances at the Federal Reserve to other depository institutions overnight. The federal funds rate is determined by the demand and supply of federal funds in the market.
-Foreign currency operations: The Desk conducts foreign currency swap transactions with foreign central banks and conducts outright purchases and sales of foreign currencies in the foreign exchange market. How many foreign exchange banks are there in India? According to the Reserve Bank of India (RBI), as of March 2018, there were 43 foreign exchange banks operating in India.