PSB’s ‘buy-sell swap’ cools down forward premiums

Mumbai: The Reserve Bank of India is said to have directed state-owned banks to cut a derivative deal known as “buy-sell swap” in the currency market, pulling down the forward premiums by as much as 193 basis points in four trading sessions, dealers said. The fall in premiums to enter forward contracts to exchange currencies will help companies with overseas liabilities to cover their currency risk at a lower cost. This should also boost