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THE Director-General of Foreign Trade, Mr N.L. Lakhanpal, on Monday
said the domestic industry's plea to allow invoicing of exports in rupee terms to all countries with a freely convertible currency would
be examined.
At an interactive meeting on the new Exim Policy, organised by the Federation of Indian Chambers of Commerce and Industry (FICCI), a
representative of the financial services industry sought clarifications as to why the DGFT did not permit invoicing of exports in domestic
currency (in this case rupees) when the Foreign Exchange Management Act (FEMA) and other Reserve Bank of India regulations permit such an
activity.
Invoicing of exports in rupee terms is currently being permitted only in respect of those cases where exports are undertaken under a
bilateral pact (for e.g. the Russian pact). Some of the exporters held that invoicing of exports in rupees to country having freely
convertible currency would insulate them from exchange risk and therefore, such a mode of invoicing should be permitted.
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