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2009-11-04

Dollar inflow should ease credit to exporters: FIEO

According to Federation of Indian Export Organisations (FIEO) the regulatory approach of the RBI towards policy rates, the rupee movements are making it difficult for MSME exporters to quote to foreig

According to Federation of Indian Export Organisations (FIEO) the regulatory approach of the RBI towards policy rates, the rupee movements are making it difficult for MSME exporters to quote to foreign buyers.

 

On Tuesday, November 3, 2009, the rupee was down by 10 paise at 47.06 a dollar and last week on Friday ended at 24 paise higher (Rs 46.96 a dollar).

 

While FIEO does not advocate any measure, which would hamper capital inflow of a low cost rupee window at 5 per cent for exports and a dollar window  at LIBOR +0.5 per cent (similar to the buyers credit being offered for imports by banks) it would help the MSME export sector to tide over the existing global crisis.

 

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