Not Rupee depreciation but a stable currency will boost international trade says CII

Last Updated: Mon, Oct 01, 2018 18:58 hrs
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Industry body CII has been quoted as saying that the Rupee depreciation does not benefit exporters. But in fact, a stable currency was needed for a long term sustainable growth of India's international trade.

In the present globalised environment, majority of costs like raw material, shipping charges, warehousing and other related services are denominated in foreign currency or at import parity price, the chamber said in a statement.

CII also reasoned that most of exporters engage in long term hedging while booking orders, and importers press for reduction in prices citing depreciation of rupee."

Chairman of CII National Committee on Exports and Imports Sanjay Budhia said, "It is more of a perception than reality that depreciation of Rupee helps exporters."

"What is required is a stable range-bound currency which will give stability and certainty for quoting prices and accepting orders in today's competitive global environment,"

The rupee on Monday weakened by 36 paise to 72.84 against the US dollar even as the RBI announced plans to purchase government bonds worth Rs 36,000 crore to boost liquidity.