Exporters mull Re invoicing

The move was being planned for the European and Russian markets, where Indian traders had better bargaining power, said a currency dealer of a bank.  The rupee has appreciated by around 10 per cent since January 2007 and based on the real effective exchange rate (the basket of currencies arranged on the trade weight basis), the rupee has risen by more than 16 per cent. Usually, it hovers in a range of 5 per cent either way. This has reduced the value of the dollar received in rupee terms.  Usually, a trade is invoiced in dollars, the internationally accepted currency.  However, with the volatility in the dollar-rupee movement, rupee invoicing is one of the options being mulled by Indian exporters.  The other option in vogue is choosing to hedge the currency risk in dollars by buying structured products (options) in stable currencies such as the Swiss franc.  While an option gives the right to buy or sell a certain currency, there is no obligation to do so. Exporters usually hedge so that they can receive payments in a stable currency vis-a-vis the rupee.  According to Vikram Rao, business director, textiles and apparels, Aditya Birla group, the European markets are estimated to contribute substantially to the future growth and the company is exploring options to transact in the European and Indian currencies.  Sridhar Chandrasekhar, head, research, Crisil, said,