Exchange rate impact on Buyers credit
This query is : Resolved
29 August 2022
Hi, Foreign exchange rate variation risk is applicable for Buyers credit and LC transaction? For cover exchange rate risk under buyers credit whether we have to go for additional risk cover mechanisms?
29 August 2022
Yes, The entities raising buyers credit are required to follow the guidelines for hedging, if any, issued by the concerned sectoral or prudential regulator in respect of foreign currency exposure. Such entities shall have a board approved risk management policy.
29 August 2022
Thanks sir, Buyers credit will not cover exchange rate risk automatically , importer have to go for hedging options like other imports and through LC.
Is it right?
Is it right?
29 August 2022
Yes, you are right......
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- House Property Reporting in ITR
- Internship/Academic shown in Salary Pay Slip of a Doctor
- TDS Claim year
- Relief u/s Section 89
- Rent lease agreement
- Refund of 20%pre-deposit paid for stay application
- Nomination of Bank for refund in itr 2
- TDS Challan Code
- GST Rate applicable for 0% Food Items sold by an Industrial Caterer
- SGST balance is there in credit ledger how to adjust for cgst
- E way bill for tractors
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
