New Delhi: The Directorate General of Foreign Trade (DGFT) has said that exporters should trade in currencies other than the dollar as the government could not compensate for the total loss incurred by the sector.
“The exporters should develop expertise in currency hedging and invoice in currencies other than the dollar. Clearly, government cannot compensate for the total loss which has been incurred by the exporters,” R S Gujral, director general of Foreign Trade said on 15 January in an interaction with the Federation of Indian Export Organisation.
The rupee has risen more than 12% against the US dollar in calender year 2007, hurting exports from the country and leading to job losses in export-oriented sectors like leather, handicraft and textiles.
Newer markets need to be explored and niche products developed as means to counter the impact of the rupee rise, Gujral said, adding that since the rupee has not appreciated against most other currencies, exporters need to transact in currencies like the euro.