On the contrary, if accounting rules stand in the way of agents’ adopting a hedging strategy that economic rationale hold optimal – on the basis of information available at the time, I must qualify, and not with the twenty-twenty vision of hindsight – then perhaps there is a need to take a relook at this inconsistency. Role of banks 17.
Now let me come to the role and response of the banks or authorized dealers in a volatile market. As I mentioned earlier, our exchange management framework places considerable restraint on residents’ holding of foreign currency assets, particularly financial assets and hence, clientele of the bank comprises, exporters, importers, foreign currency borrower and overseas investors.