Mumbai, April 20 : India’s financial markets have developed into a dynamic and resilient force to fuel economic growth with an almost doubling of the foreign exchange market from $32 billion in 2020 to $60 billion in 2024 and the average daily volumes in the overnight money markets surging from about Rs 3 lakh crore to over Rs 5.4 lakh in this four-year period, according to RBI Governor Sanjay Malhotra.

Addressing the 24th FIMMDA-PDAI annual conference in Bali this weekend, Malhotra said the levels of transparency in Indian markets are at par with the best in the world.

“With recent regulatory reforms, we have seen greater product and participant diversity, and the onshore and offshore markets have become tightly integrated,” he pointed out.

Malhotra said all the financial market segments of the country, including Forex, G-sec, and Money Markets, have largely remained stable. While the Rupee came under a bit of pressure a few months ago, it has fared better thereafter and regained some lost ground.

The foreign exchange markets are reasonably liquid with narrow bid-ask spreads. There is growing transparency in this market. All FX derivatives are reported to the Trade Repository, and reporting of cash and spot transactions has commenced. A bulk of FX spot transactions are traded on electronic trading platforms (ETPs). Authorised trading platforms are also available for forward transactions, but there appears to be a preference for such trades to take place bilaterally. Trading on ETPs enhances transparency and market efficiency.