Commerce and Industry Minister Anand Sharma has said that Centre is considering currency-swap deals with some key trading partners to stabilise the rupee. The Indian currency hit a record low of 66.19 against dollar on Tuesday.
Commerce and Industry Minister Anand Sharma has said that Centre is considering currency-swap deals with some key trading partners to stabilise the rupee. The Indian currency hit a record low of 66.19 against dollar on Tuesday.
The central banks of two partner countries undertake swapping of currencies in which the banks would give dollars to each other for stabilising their local currencies, if required.
Sharma during the Board of Trade meeting on Tuesday in Delhi said, “We need to look very seriously at the possibility of currency swap with some of the countries. This will not only help stabilise the rupee but increase availability of credit for the exporters, especially in the SMEs and will also push project exporters and support the labour-intensive sectors.
Sharma further said that he will be taking up the proposal with Finance Minister soon. Sharma announced the formation of a task force that has been mandated to submit a report within a month.
Sharma said exporters are not able to fully utilise the benefits of the falling rupee because of high import intensity in the exported product.
During the meet, exporters urged government to reduce the transaction cost for exporters. The commerce ministry has also constituted a committee for this under Director-General of Foreign Trade Anup K Pujari. The committee will be submitting its recommendations by October.
According to S Gopalakrishnan, CII President and Executive Vice-Chairman of Infosys the transaction costs in India add 10-12 per cent extra cost, which need to be reduced.
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