measures that could be progressed in the coming months. references cox, w and pavletich, h. ‘ 12th annual demographia international housing affordability survey. rating middle - income housing affordability ’ demographia international housing affordability survey ( 2016 edition : data from 3rd quarter 2015 ). mohommad, a., nyberg, d., and pitt, a. ‘ new zealand : selected issues ’. imf country report 16 / 40, february 2016. andrews, d., sanchez, a. c. and johansson, a. ‘ housing markets and structural policies in oecd countries ’. oecd economics department working paper no. 836 january 2011. spencer, g. ‘ action needed to reduce housing imbalances ’. speech delivered to the chamber of commerce in rotorua, 15 april 2015. bis central bankers ’ speeches

exchange derivatives were revised in december 2010 in the context of developments in the international and as well as the domestic markets. the revised guidelines put more emphasis on the suitability and appropriateness aspects of products being offered. market - makers have been advised to undertake derivative transactions with a sense of responsibility and cautioned to avoid, among other things, misselling. these products are to be offered to corporates who understand the nature of the risks inherent and have a well laid down risk management policy. such policy must clearly lay down, inter - alia, guidelines on risk identification, management and control, prudent accounting and disclosure norms and must be capable of ascertaining the mark to market positions on an on - going basis. in fact, the reserve bank has made it mandatory for the market participants to offer a tool or a calculator which would enable the corporate to mark to market these products on a continuous basis. though the objective of the policy is prudential in nature as it protects the market participant against the credit, reputation and legal risks, it is important to realize that the policy protects the interest of the corporates as well. let me also reiterate that banks need to closely monitor the un - hedged foreign currency exposures of corporates as they had hedged approximately only 60 per cent and 38 per cent of their trade and non - trade related exposures respectively till december 2011. excessive risk taking by corporates could lead to severe distress to them and large credit loss to the banks in event of sharp adverse movements in currencies. in 2008, it was conveyed to the banks that they should have a board approved policy covering un - hedged foreign exchange exposure of all the clients including small and medium enterprises. banks while extending fund and non - fund based credit facilities to corporate, should rigorously evaluate the risks arising out of un - hedged foreign currency exposure of the corporates and price them in the credit risk premium as we have recently reiterated in our circular following the announcements made in the second quarter review of the monetary policy 2011 – 12. during the recent episode of excessive volatility leading to sudden and sharp depreciation of indian rupee against us dollar, it was noticed that the flexibility given to banks for fixing their intra - day limits, which were in many cases, significantly higher than their net overnight open positions limits, were often being used for building up speculative positions and taking a directional bet on rupee. the facilities given to corporates by way