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<h1>Regulatory Circular Updates Risk Management for Interbank Dealings, Allows Flexible Hedging for Exporters and Importers Under FEMA Rules.</h1> The circular issued by the regulatory authority addresses risk management and interbank dealings for Category-I authorized dealer banks. It refers to the Foreign Exchange Management regulations and previous circulars regarding hedging currency risks for exporters and importers. Exporters can hedge based on past export turnover, while importers can hedge based on past import turnover. The circular allows for greater flexibility by permitting cancellation of contracts up to 75% of eligible limits with the possibility of bearing or gaining from the loss or gain. Contracts exceeding 75% must be deliverable, with losses borne by the parties involved.