Exporters Of Garments In India Suffer From Foreign Exchange Rate Shocks

Although the current situation is not clear, in the past two years, the rupee appreciation seems to have led many garment exporters to enter into foreign exchange trading.

Some bold banks have persuaded clothing exporters to do some cross - exchange credit, which can make up for the loss of the dollar.

Many exporters of this kind of business have been shocked by the sudden appreciation of the dollar, and now they face a double heavy blow.

Rupee has not fully depreciated against the US dollar, and at the same time, their exchange rate cocktail, which is regarded as a hedging instrument, is beginning to sour, and they suffer double losses.

Several Tirupur knitwear exporters burned their fingers in exchange rate trading.

The extent of their losses is unclear, but the amount involved is not small.

Textile and clothing exporters may also suffer losses in other areas.

Their losses largely depend on the performance of the US dollar in the next few weeks, such as the yen and Swiss francs, and the euro and the pound.

If the dollar continues to strengthen, the textile and garment industry is likely to mutate.