India's central bank on Tuesday decided to relax norms on foreign exchange earnings of exporters as the currency strengthened after falling to record lows.
The Reserve Bank of India said it will allow exporters to retain all their foreign currency earnings in the Exchange Earner's Foreign Currency account. Nonetheless, the total amount of accruals in the exporter account should be converted into rupees on or before the last day of the succeeding month.
In May, the RBI had directed exporters to convert 50 percent of their foreign currency holdings into rupees, to support the currency.
Today, the bank also permitted exporters to cancel and rebook forward contracts up to 25 percent of the total contracts for hedging.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.