SBT tells customers to ‘cover’ positions in forex market

http://www.thehindubusinessline.com/industry-and-economy/banking/sbt-tells-customers-to-cover-positions-in-forex-market/article4843431.ece

State Bank of Travancore (SBT) has launched a series of meetings of exporters and importers aimed at giving them a lowdown on what is happening in the economy and foreign exchange market.

The first of the meetings was held in Kochi where 60 customers of the bank participated, S. Vasudevan, general manager of the SBT Network in the region, told Business Line.

RUPEE FALL

The bank had lined up a number of experts dealing in forex market and related fields to update the audience on what had triggered the precipitous fall of the rupee in recent times, among other things.

“Ensure you are effectively covered and at no cost should any position kept open for long” was the advice tendered to anxious customers, Vasudevan said.

Foreign Institutional Investors have a right to pull back their money from India in the context of signals from the US Federal Reserve that it might go slow with its loose money policy.

This had driven up demand for dollars overnight, pummelling the value of the rupee in the bargain. But experts handling the session felt that it was a short-term phenomenon only.

‘REBOUND’ EFFECT

They felt that the rupee would start benefiting from the ‘rebound’ effect when markets open on Monday. Promised support from Reserve Bank of India and the Centre also will lend valuable support.

SBT had a turnover of Rs 24,026 crore in foreign exchange in 2012-13. It proposes to organise similar meets at potential business centres across country as part of a strategy to expand forex business, Vasudevan said.

Leena Nair, chairperson, Marine Products Export Development Authority, inaugurated the proceedings, which included a general debate and question and answer session.

SPECIAL SESSIONS

Special sessions were held on the nuances of Foreign Exchange Management Act and regulation of foreign trade; risk to exports; policies of Export Credit Guarantee Corporation; and SBT products in foreign trade.

S. Vasudevan delivered the welcome speech while E. K. Harikumar, chief general manager (commercial banking), SBT, presided over. Chandrasekharan, general manager (treasury) spoke on the occasion.

Among bank officials who handled various sessions were Latha Subramaniam from forex treasury, Mumbai; S. Harikrishnan, general manager; K.S. Narayanan, assistant general manager; and R. Mahalingam, senior manager, Export Credit Guarantee Corporation.

Mayadevi P., deputy general manager of Ernakulam zone of SBT, proposed vote of thanks.