labels: rbi
Exporters move RBI as rising rupee hits trade news
22 September 2007

Mumbai: The Federation of Indian Export Organisations (FIEO) has sought RBI intervention to calm the rupee and support the falling dollar to help exportes hit by the falling dollar.

FIEO president Ganesh K Gupta said the RBI should not only intervene directly in the foreign exchange market to support the falling dollar but also cut the interest rates to check foreign fund flows.

"We want immediate intervention by RBI," he said. Besides checking the overseas fund flows, a cut in the prime lending rate (PLR) would reduce exporters'' cost of borrowing. "The advantage of pre-shipment and post-shipment credit at 4.5 per cent below PLR has been offset by the increase in the benchmark interest rates," the FIEO chief said.

Gupta said the government has not implemented the package for exporters announced in June this year. "The announcement simply remained on paper and arrears of increased Duty Entitlement Pass Book (DEPB) and drawback have not been given to exporters," he said.

He also demanded extension of recently notified service tax waiver to transport of goods from factory to container depots.

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Exporters move RBI as rising rupee hits trade