bis central bankers ’ speeches equity market or even debt. doesn ’ t it follow as a corollary that the inr should also become an object of their attention? however, as an economy moves along the path of liberalisation and globalisation, ideally the endeavour must be to bring on - shore all genuine hedging requirements of non - resident entities. a connected issue is invoicing in inr. we are well aware that this is yet to catch the fancy of the market participants on a sustained basis. a one - way movement of inr certainly increases its invoicing flavour amongst the probable beneficiaries. but the true test of a currency of invoice is the country ’ s macro economic strength. the ease with which the currency and related risks can be hedged would be a key determinant in accessing the product. all that i would like to emphasise is that rbi would endeavour to create an enabling environment. we have recently moved a step forward by allowing hedging opportunities to non residents. the experience gained will certainly facilitate evaluation and moving ahead. i believe a congregation of this nature must go beyond deliberating issues of proximate concerns. a strategic element / flavour would add value to the deliberations and aid in delineating the future trajectory of regulations. moving towards this vision, i suggest a futuristic question on this occasion to the market participants - an intellectual debate. what are the attributes of a reserve currency? is fuller capital account convertibility of the currency a prerequisite? where does inr stand in this regard? i would like the annual meet to have a robust discussion, may be in a more sober mood. let me now conclude. i have highlighted the following issues that will guide our efforts in development and regulation of forex market in the foreseeable future. a. further development of the forex market has to be looked alongside the progress on capital account liberalization which in turn is dictated by broader macroeconomic concerns and emergent international environment. b. the reserve bank has been actively pursuing improvement in the otc market infrastructure and is committed to making further efforts to ensure compliance with the global best practices. c. the otc forex market in india is a part of the relationship banking and thus, the banks have a responsibility to ensure the appropriateness and optimality of the transactions from the customer ’ s view point. d. international interest in inr and emerging off - shore markets are consistent with progressive

swaminathan j : supervision amidst emerging risks opening remarks by mr swaminathan j, deputy governor of the reserve bank of india, at the " high - level policy conference of central banks in the global south ", organised by the reserve bank of india as a part of commemoration of its 90th year, mumbai, 22 november 2024. * * * esteemed delegates from across the world, respected governor, deputy governors and all my colleagues from the reserve bank of india, ladies and gentlemen. a very good afternoon to you all. it is indeed my honour to deliver the opening remarks before such a distinguished panel comprising dr. john mushayavanhu, governor, reserve bank of zimbabwe ; mr. s. s. mundra, former deputy governor, rbi ; mr. jay surti, division chief, financial supervision and regulation division, monetary and capital markets department, imf ; mr. krishna sastry pendyala, partner, cyber security, e & y and the moderator for the panel, mr. m. nagaraju, secretary, department of financial services, government of india. the supervision of banks and financial institutions, as we understand it today, is a relatively recent development - dating back around fifty years1. however, the concept of overseeing banks is embedded in the very foundations of central banking. from the early days, central banks have fulfilled their role as the lender of last resort, ensuring that financial institutions remained solvent and protected against systemic crises. indeed, supervision has been the keystone2 that has supported the integrity and stability of the financial system, by protecting depositors'interests, and thereby fostering trust in the banking sector. as the world rapidly evolves, so does the nature of risks confronting the financial sector. technological advancements have brought incredible efficiencies but also significant vulnerabilities, such as cybersecurity threats and risks stemming from third - party dependencies. climate change, once considered a distant concern, now poses immediate and material risks to institutions and economies alike. added to this are the complexities of geopolitical uncertainties, volatile markets, and shifting macroeconomic trends. thus, the task of supervision has become more dynamic and critical than ever before. supervision, therefore, needs to evolve with the times and can no longer be just about enforcing compliance. instead, it needs to anticipate risks, respond swiftly to both foreseeable and unforeseen risks and foster resilience in the financial system.