Home / Knowledge / News / Current appreciation to hit small exporters: FIEO
Current appreciation to hit small exporters: FIEO
20
Oct '09
Mr A Sakthivel, President, Federation of Indian Export Organisations (FIEO) while commenting on the volatility of the rupee stated that (a) the rupee was bolstered or fell with an increase/decrease in the Indian benchmark SENSEX and (b) dollar weakness/relative strength of Asian currencies and, as such, has kept the MSME export sector on tenterhooks as they are worried about net realizations falling into a negative zone as they work on leaner margins in the present times.

FIEO Chief elaborated that large current account surpluses and low inflation rates retained the supremacy of the dollar. But the present volatility of a domestic currency vs. dollar is difficult not only for India (since exports are on the downturn) but also for economies of both Japan and Europe which are also dependent on exports.

The American currency on the other hand would prefer to be “weak" given the current situation. [The American treasury sold $1.4 trillion in fiscal 2009 ended Sept 30th to finance its budget deficit]. There is, however a shift in dollar as a “reserve currency" globally and it is 37% of the new reserves down from an average of 63% since 1999.

Mr Shaktivel opined that while the large exporters manage to hedge (which also comes at a cost) smaller exporters have to make do with a mark-up on their export pricing. The only possibility could be cheaper dollar loans as against LIBOR +3.5% (or more practically) in the given circumstances.

Federation of Indian Export Organisations

Must ReadView All

Textiles | On 25th Mar 2017

GST to positively impact retail value chain: CBRE

The implementation of the Goods and Services Tax (GST) bill in India...

Textiles | On 25th Mar 2017

MEGlobal to build first ever US MEG plant

Monoethylene glycol (MEG) producer MEGlobal plans to construct a new...

Courtesy: Ulster Carpet

Textiles | On 25th Mar 2017

Ulster Carpets acquires Griffith Textile Machines

Northern Ireland based manufacturer of carpets, Ulster Carpets said...

Interviews View All

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search