RBI measures will allow more liquidity in hands of exporters: FIEO president
New Delhi, May 22 (KNN) Welcoming the Reserve Bank of India's (RBI) announcement, Federation of Indian Export Organisations (FIEO) president Sharad Kumar Saraf said these will allow more liquidity in the hands of the exporters thereby helping them in fulfilling their overall export obligation during such difficult and testing times.
''We are ushering into an era of very competitive credit rates to help manufacturing and overall economy,'' said FIEO president in a statement.
Sharaf observed that these measures will not only help in revival of growth but will also help in mitigating the impact of Covid-19 while ensuring that the inflation remains within the target range.
Besides steps taken with regard to outward remittance for imports being extended from 6 months to 12 months, will help importers as they will have the longer repatriation period, he said.
''The Rs 15000 Crore line of credit to Exim Bank for Dollar Swap facility will help in leveraging long term and project exports as a "marketing tool" as buyers would be more willing to buy products from the seller,'' he avowed.
FIEO President also urged the government for immediate announcement of an export package covering all the sectors of exports and implementation of the economic measures announced at the ground level for quick and early starting of trade and businesses across the country during such difficult and testing times.
''RBI should continuously monitor the delicate economic situation and make pragmatic announcements after every two months interval,'' Saraf suggested.
The apex banking body on Friday, cut the repo rate by 40 basis points and extended the moratorium period for another three months till 31st August, 2020 along with the extension of the pre and post shipment credit for the exports sector from existing 12 months to 15 months.