CURRENCY PIPS

CURRENCY PIPS

India's upper house of parliament approved the foreign exchange management bill on December 8, a major step towards a liberalisation of the Indian rupee forex market.

The new bill, which requires the Indian president's approval, will replace the 1973 foreign exchange law. Under the previous arrangement special permission was needed for foreign exchange transactions. Under the new ruling, forex dealings will be managed rather than regulated. Capital account transactions are also recognised. Th