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.
by RTT Staff Writer
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