It is now widely accepted that while internationalisation and a freer capital account comes with its own set of benefits, it is not without risks and that freer capital flows comes with their own set of challenges, the primary one being that of volatility and we need to gear up to manage that.
We are seeing a good amount of interest in the Rupee trading arrangements that we have been endeavouring to put in place. If our efforts towards Rupee invoicing bear fruit, domestic exporters and importers will not need to hedge, but there will be other opportunities in the form of their non-resident counterparts who may need to hedge. New technologies, new frontiers 34.