Mumbai: Local currencies will play an ever-increasing role in cross-border trade and payments as they lower transaction costs, reduce currency mismatches, and improve settlement efficiency, RBI Deputy Governor Rohit Jain has said.

Speaking at the Annual Day of the Foreign Exchange Dealers' Association of India (FEDAI) last week on 'India's Foreign Exchange Markets: Getting ready for the next Decade', Jain said that by their very nature, markets are continuously evolving and parameters of their readiness are being regularly renewed according to the needs of the time. "Our market would be ready for the next decade if it can help facilitate India's ever-increasing engagement with other countries, absorb shocks in a non-disruptive manner, serve the smallest user as efficiently as the biggest, and embrace new technology without vitiating the trust it has earned," he said.