Anurag Bhullar
CII has proposed the structuring of a committee, to be headed by PM Manmohan Singh for solving the tussle between exporters and banks.
Exporters were drawn into buying of derivative products that were of complex nature. The buyers however had to bear huge losses owing to the unfavourable fluctuation in the rupee value. The value in case of mid- and small-sized companies stands at about Rs.2000 crore. Exporters went for such products in their attempt of hedging currency risk.
The domestic currency appreciated by about 10% in 2007 and depreciated by 20% in last year.
The reason being cited is the lack of understanding about these financial products, which has led to the present situation.
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