However, there have been instances in the recent past wherein the flexibilities in hedging provided by the Reserve Bank have been misused by the corporates with speculative intent for generating profits that had exacerbated the volatility of INR-USD exchange rate in the recent period. Finally, Reserve Bank was constrained to resort to administrative measures in December 2011 to curb such speculative practices.
BIS central bankers’ speeches  3  Recent changes made to the Guidelines What are the changes? 15. As stated earlier, global factors have been increasingly having an impact on the volatility of the forex markets with significant pass through of global volatility.