Currently only 4 INR currency pairs are traded on Indian exchanges they are USD, EUR, JPY and GBP. Why can’t it introduce more INR pairs like AUDINR, CADINR, CHFINR, etc?
Is this a liquidity issue or just preference?
More of a liquidity issue.
Not sure, maybe just because of liquidity and traction. However, currency pairs are heavily trades in the Primary market and the ones being traded in the secondary market are just a snapshot of what’s happening in the primary market.
Is there a way where retailers can trade in primary market?
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I guess no. Firstly the ticket size is huge and secondly I am sure there would be entry barriers (in terms of regulations, licenses, etc.).
Not at all legal for retail… It may result in speculative attacks, which can sometimes break the RBI. Remember the Soros case of Mark vs. Pound?