EEPC Want Conversion of Dollar Earnings on REER
NEW DELHI: Apex engineering exporters' organisation, EEPC India has approached the Reserve Bank of India and the Commerce Ministry with a demand that exporters be allowed conversion of their dollar earnings, based on the Real Effective Exchange Rate (REER), since the rupee is over-valued in terms of Nominal Effective Exchange Rate (NEER).
"Our members have requested that the Indian exporters should be allowed to convert their dollars into rupees at the REER, as per the RBI indices", EEPC India Executive Director & Secretary Bhaskar Sarkar said in a letter to Commerce Secretary Ms Rita Teaotia. A similar letter has been sent to RBI Governor Dr Urjit Patel.
The EEPC India letter said it has received representations from the member exporters stating " they are badly affected by the sharp appreciation of the Indian rupee. The rupee has appreciated by around 6% between
January 2017 and as of today. This is making it extremely difficult to be competitive at a time when some of our major competing Countries are depreciating vis-a- vis dollar.
The Indian engineering exporting community has been badly affected by a range of other measures such as the RBI's Caution Listing, non-acceptance by banks of payments from OFAC countries, increasing steel prices, amongst others"
The engineering exporters said the RBI's latest measure of 'caution-listing' is also hurting them. As per the new norms, exporters would be caution-listed if their shipping bills remain open for over two years from the shipment date in the Export Data Processing and Monitoring System.