India will soon have representation in the Global Foreign Exchange Committee (GFXC) of various central bankers and experts that has been recently formed to work towards the development of a transparent global foreign exchange market.
According to a report on reducing misconduct risks in the financial sector presented by the Financial Stability Board (FSB) at the G20 Summit of leaders that concluded here on Saturday, actions to enhance conduct standards and adherence in markets include a Global Code of Conduct for the Foreign Exchange Markets. The FSB is an international body for the global financial system.
The committee has been set up under the guidance of the Bank for International Settlements (BIS), which is an organisation owned by 60 member central banks representing countries from around the world.
The new GFXC is composed of public and private sector representatives from the foreign exchange committees of 16 international forex trading centres.
The earlier GFXC was made up of eight foreign exchange committees — those from Australia, Canada, Euro area, Hong Kong, Japan, Singapore, UK and the US.
The committee will now also include representatives from existing, or soon to be established, foreign exchange committees in Brazil, China, India, Korea, Mexico, South Africa, Sweden and Switzerland.
The GXFC will seek to promote collaboration and communication among local foreign exchange committees and other jurisdictions with significant forex markets.
In the Hamburg Action Plan adopted at the end of the two-day summit, the G20 countries, including India agreed to keep the markets open and fight protectionism, including all unfair trade practices and hinted at advancing the implementation of international standards on transparency to fight corruption, tax evasion, money laundering and terrorist financing.
Addressing a session at the summit on Friday, Prime Minister Narendra Modi criticised the threat to globalisation posed by protectionism in some leading G20 nations and exhorted the grouping to assume the leadership on major global issues saying India stood ready to carry forward the fight against corruption and black money.