Exporters require to convert 50% foreign exchange holdings into rupees

The Reserve Bank of India said exporters will be required to convert 50% of their foreign exchange holdings into rupees. Exporters will also be allowed to buy foreign currency only after utilizing all the foreign currency holdings in their accounts.

According to RBI, the Exchange Earners' Foreign Currency (EEFC) account holder can buy forex after existing balance has been used. It says exporters should convert 50% of forex earnings. Half of EEFC means USD 2.5 billion should be converted in two weeks. Currently the RBI cap on open position at 5 times of available limit.

Source : Equity Bulls

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