Forex derivatives hurt exporters
With the rupee rising high, all those exporters who entered in foreign exchange derivative deals with the banks in order to manage their losses have now come under different loss situation. These exporters are now suffering losses with a fall of Indian currency (rupee) against US currency.
By stating unfamiliarity with derivatives and its world, small scale sector exporters have come with an agreeable solution their dilemma. They also said that the unfamiliarity has exposed them higher amount of risk and downslide of currency.
President of the All India Forex Derivative Consumers’ Forum, M.R Venkatesh, said that the issue has been taken up to finance ministry as well as with Reserve Bank of India (RBI). Venkatesh blamed banks on breaching RBI standards and said that because of the flouting done with norms exporters have gone through heavy and unmanageable losses. He also said that paying off of such loss will wipe out majority of companies causing massive unemployment as well as attendant law and order issues.