Exporters urged not to speculate on currency movement due to mkt volatility

Topics exporters | Markets

A senior State Bank of India

official on Friday urged exporters not to speculate on currency movement due to volatility in the market at the moment.

"There is volatility in the currency market in the country at the moment. Exporters should not get caught on the wrong side. I urge all the exporters not to speculate on the currency movements," S S Venkatramana DMD, global markets, SBI, said.

Speaking at a webinar organised by FIEO (eastern region), he said RBI has brought in certain changes in the hedging transactions from September one, and it will be a call for the exporters how to go forward.

"In India, the rate of interest is still attractive which is causing inflows of FDIs into the economy. This is causing foreign exchange reserves to increase. Exporters will have to take appropriate forex cover," Venkataramana added.

The official said SBI was the first bank in the country to come out with an emergency credit line since the outbreak of the pandemic.

He said the apex bank had also stepped in with a number of measures to alleviate the problems caused by the health crisis like TLTRO (targeted long term repo operation).

According to the official, export credit forms a part of priority sector lending.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel