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FIEO calls for RBI intervention in forex market
Chennai, July 21: The Federation of Indian Export Organisations (FIEO) has appealed to the RBI to `more actively and frequently` intervene in the forex market and moderate the currency movements, in the wake of `the continuing one sided` appreciation of the rupee vis-a-vis the dollar.
Chennai, July 21: The Federation of Indian Export Organisations (FIEO) has appealed to the RBI to 'more actively and frequently' intervene in the forex market and moderate the currency movements, in the wake of 'the continuing one sided' appreciation of the rupee vis-a-vis the dollar.
"The wholly one sided appreciation of rupee for the last one and a half year, from Rs 48.2425 as on December 31, 2001 to Rs 46.1475 on July 15, 2003 is something which defies logic" Rafeeque Ahammed, FIEO president told a press conference here Monday.
The price competitiveness of exporters has been affected by this phenomena, he said.
"It is high time that RBI thinks of speed breakers to halt or regulate inflow of dollars".
He said this was a serious issue from the point of view of competition from China, which had pegged its currency to the dollar, thereby gaining a competitive advantage over India.
As much as 22 per cent of Indian exporters raised their invoices in dollar up to 50 per cent of their exports, he said, adding that for them, the present trend was a cause for concern.
The price competitiveness of exporters has been affected by this phenomena, he said.
"It is high time that RBI thinks of speed breakers to halt or regulate inflow of dollars".
He said this was a serious issue from the point of view of competition from China, which had pegged its currency to the dollar, thereby gaining a competitive advantage over India.
As much as 22 per cent of Indian exporters raised their invoices in dollar up to 50 per cent of their exports, he said, adding that for them, the present trend was a cause for concern.