The Hindu : Andhra Pradesh / Hyderabad News : Exporters urged to link trade with Euro

Online edition of India's National Newspaper
Saturday, Dec 15, 2007
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Andhra Pradesh

Andhra Pradesh - Hyderabad

Exporters urged to link trade with Euro

Special Correspondent

This can offset the losses due to rise in rupee value

HYDERABAD: Exporters from the State have been cautioned by the sub-committee on export promotion of the State-Level Bankers’ Committee (SLBC) to consider linking their trade with currencies like Euro that are appreciating against the US dollar. This can offset the losses due to the rise in rupee value.

Addressing bankers and exporters at the first-ever meeting of the sub-committee, assistant general manager of the RBI Durai Rajan felt that market dependent exchange rates were a necessary evil that one had to live with. While rupee would continue to appreciate owing to influx of foreign funds, one could not expect the RBI to regulate the fluctuations in the exchange rates.

The exporters could take the possible strengthening of rupee against dollar while entering into deals with their business partners abroad and also renegotiate their deals, if there was a major appreciation. While the banks were providing facilities like hedging and forward cover , Mr. Rajan said these could provide temporary solace.

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