in trade transactions, the reserve bank of india has now allowed non - resident importers and exporters to hedge their currency risk in respect of exports from and imports to india, invoiced in indian rupees. in this regard, forward foreign exchange contracts with indian rupee as one of the currencies and foreign currency – indian rupee options are the available products for the purpose of hedging the risks. non - resident exporter / importer can avail of the facility either directly from ads in india or through their banker overseas. the ad, on the basis of the documentary evidence and undertakings provided by the non - resident, has to be satisfied of the bonafides of the customer as well as of the transaction. as with all other hedging facilities available to non - residents, these contracts once cancelled cannot be rebooked. we would be happy to have your feedback on this particular measure announced by the reserve bank of india as it is almost nine months since the same was announced. eligible borrowers have been permitted to avail of ecbs designated in indian rupee from their foreign equity holders under the automatic / approval route. in order to hedge the currency risk arising out of such ecbs, forward foreign exchange contracts with indian rupee as one of the currencies, foreign currency - indian rupee options and foreign currencyindian rupee swaps have been permitted. the debate on internationalization of a currency often goes hand - in - hand with that on capital account convertibility. it is a known fact that capital controls can co - exist with an international currency. economic history is rich with examples of countries, especially advanced countries with an international currency, imposing a variety of capital controls to stem the depreciation / appreciation of their currencies and / or to regulate short - term capital flows. while internationalization of a currency is not a pre - requisite for capital account convertibility, its large scale externalization has the potential to impose significant costs, especially over the medium - to long - term as the real and financial sectors of a country grow and develop strong linkages with the world economy. the pace and the process of internationalization of a currency is of course dependent on the acceptable degree of capital account convertibility. this, in turn, involves the extent to which non - residents are allowed to participate in the domestic forward foreign exchange markets to obtain cover and invest in the domestic markets for any indian rupee balances that they may accumulate

on major economic issues have been published externally, and that staff at our regional branches are actively engaging as ambassadors for the bank. however, it is also true that there have been no visible outcomes concerning the wage issue, delegation of authority, or our " work diet ". as these issues require more time to resolve, we need to make continuous efforts toward improvement. the past one year has been challenging, but it seems that the next one will not be any easier. in particular, the bank's genuine capability will face a crucial test. over the past one year, most central banks, including the bank of korea, rapidly raised their policy rates due to high inflation, and there was a consensus among our citizens that price stability was the top priority. however, it is highly likely that inflationary trends and economic conditions will vary from country to country this year. this means that a sophisticated policy response has become more important considering the trade - off between prices and growth, and the true capabilities of central banks in each country will be clearly revealed in this process. this also applies to our organizational management. without tangible results, there will only be disappointment surrounding our organizational innovation. now is the time to intensify our endeavors to achieve concrete outcomes so that there will be no complaints that " our management is all talk and no action ". dear fellow members of the bank of korea, for the bank of korea to make progressive changes in both policy and internal management, a shift in mindset is required. this is because the environment 2 / 5 bis - central bankers'speeches surrounding us is changing rapidly. the overall economy is experiencing significant changes, affected by not only internal factors, such as low birth rate and aging population, but also by the'new normal'after the pandemic, fragmentation of the global economy, a deepening of geopolitical conflict, and the proliferation of innovative it, such as artificial intelligence. rather than sticking to our past successes, we need to be prepared to make bold changes that align with this new landscape. for instance, the primary target for our policy has been banks. in the bank of korea act, the phrase " financial institutions " refers to banks only. however, the share of deposits at non - bank financial institutions already surpassed that at banks in the early 2000s, and their settlement via bok - wire + has grown continuously. transactions between banks and non - banks have also increased, leading to greater interconnectedness among them. given the increasing importance of non