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Centre allows international trade settlements in rupees for export promotion schemes
- The ministry said the changes have been notified for imports for exports, export performance for recognition as Status Holders, realisation of export proceeds under advance authorisation and Duty-Free Import Authorisation schemes, and realisation of export proceeds under export promotion capital goods scheme
The Central Government on Wednesday allowed international trade settlements in the Indian currency for export promotion schemes under foreign trade policy. "The government of India has made suitable amendments in the Foreign Trade Policy and Handbook of Procedures to allow for international trade settlement in Indian rupees," a statement said.
"Given the rise in interest in internationalisation of Indian Rupee, the given Policy amendments have been undertaken to facilitate and to bring ease in international trade transactions in Indian Rupees," the Ministry of Commerce & Industry said in a statement.
The ministry said the changes have been notified for imports for exports, export performance for recognition as Status Holders, realisation of export proceeds under advance authorisation and Duty-Free Import Authorisation schemes, and realisation of export proceeds under export promotion capital goods scheme.
Meanwhile, the rupee appreciated by 45 paise to close at 81.47 (provisional) against the US dollar today amid fall in crude oil prices, dollar weakness and sustained foreign fund inflows.
At the interbank foreign exchange market, the local unit opened at 81.43, and witnessed an intra-day high of ₹81.23 and low of ₹81.62 during the session.
The local unit finally settled at 81.47 against the American currency, registering a rise of 45 paise over its previous close.
On Monday, the rupee had settled at 81.92 against the US dollar. The forex market was closed on Tuesday on account of 'Gurunanak Jayanti'.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.18 per cent to 109.83.
Global oil benchmark Brent crude futures fell 0.64 per cent to USD 94.75 per barrel.
"Rupee continued to gain strength as the broader dollar witnessed selling pressure at higher levels. The greenback continued to remain weighed down also ahead of the US mid-term elections results," said Gaurang Somaiya, Forex and Bullion Analyst, Motilal Oswal Financial Services.
Some market participants suggest a strong chance of Republicans winning a House majority and a tight race for Senate control.
"We expect the USD-INR (Spot) to trade sideways and quote in the range of 81.30 and 81.80," Somaiya said.
On the domestic equity market front, the 30-share BSE Sensex declined 151.60 points or 0.25 per cent to end at 61,033.55, while the broader NSE Nifty fell 45.80 points or 0.25 per cent to 18,157.00.
Foreign Institutional Investors (FIIs) were net buyers in the capital markets as they purchased shares worth ₹1,948.51 crore on Monday, according to exchange data.
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Business NewsNewsIndiaCentre allows international trade settlements in rupees for export promotion schemes
First Published:9 Nov 2022, 06:00 PM IST
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