India Implements Strictest Foreign Exchange Control in a Decade, Determined to Curb Rupee Decline at Any Cost

```htmlGolden Ten Data reported on April 2 that India has banned domestic banks from offering the most popular tools for offshore rupee trading. This drastic move threatens a market with a daily turnover of $149 billion and aims to support the continuously declining local currency. The Reserve Bank of India has implemented its strictest measures in over a decade to curb speculation and support the rupee, which has repeatedly hit new lows this year. Since the Iran war accelerated the rupee’s decline, exchange rate pressures have intensified further. The first measure was introduced last Friday evening, with regulators setting a daily onshore currency position limit of $100 million per bank. This decision prompted banks to hurriedly close at least $30 billion in arbitrage trades. Abhishek Upadhyay, economist and primary dealer at ICICI Securities, stated: "This again sends a signal that the central bank is willing to consider tough or even regressive measures, and its current focus is on the stability of the rupee rather than liquidity."```