Govt urges exporters to convert FX earnings to rupees

The government has decided to urge the local exporters to convert their foreign exchange (FX) earnings to rupees in order to limit the rupee from further depreciating.

The State Minister of Money and Capital Market and State Enterprise Reforms, Ajith Nivard Cabraal told TimesOnline that they have observed that exporters who earn in dollars have become reluctant to convert their money to state currency thinking that the value of the dollar would increase further.

However, this move has only resulted in further depreciation of the rupee as the amounts of these foreign currencies are not converted and enter the country.

Mr Cabraal said that they would be creating a system to urge the exporters to convert their foreign exchange earnings to rupees. He added that they also would take actions against exporters who would not convert their foreign currency to rupees.

A source for the ministry said that they uncovered 1200 million dollars which had not been converted in 2020 and 800 million dollars had not been converted so far in 2021.

The state minister also added that the country could not remain under lockdown and pointed out that the travel restrictions should be called off in order for economic activities to resume.

He said if the country remains under lockdown for too long the economy of the country could crash as a result of it.