RBI eases rules for exporters to access FX market
MUMBAI (Reuters) - The Reserve Bank of India (RBI) has allowed exporters to access the foreign exchange market without having to first exhaust funds in their foreign currency accounts, reversing a previous restriction imposed to prevent a sharp fall in the rupee.
The move was triggered by operational difficulties faced by these account holders, the RBI said on Tuesday.
In May 2012, the RBI mandated exporters to sell half of their foreign currency earnings and buy rupees instead of holding them in their exchange earner's foreign currency account (EEFC).
The rupee had been hitting record lows due to global risk aversion and foreign investors' concerns over India's sluggish growth and lack of reforms.
In late June 2012 the currency touched a record low of 57.32 to the dollar.
"This move shows that the RBI is probably comfortable with the rupee's level and may further ease restrictions," said a foreign exchange trading head at a private bank.
The rupee hit a near three-month high of 53.3750 per dollar on Tuesday, before closing at 53.81/82.
(Reporting by Neha Dasgupta)
- Tweet this
- Share this
- Digg this
- Iran hangs woman convicted of killing alleged rapist
- Google's Pichai to oversee major products and services
- UPDATE 1-UK's Labour suffers setback as leader in Scotland quits
- India picks Israel's Spike anti-tank missile over U.S. Javelin - source
- Modi takes tea, but no questions, in first press event as PM
The latest Reuters poll of 20 economists taken over the past week shows Asia's third-largest economy will likely grow 5.5 percent this fiscal year and 6.4 percent the next, slightly better than 5.3 percent and 6.3 percent expected in the July poll. Full Article
Euro zone risks "relapse into recession" without structural reforms - Draghi. Full Article
Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw” Full Article