Dollar crisis

In a free economy it is usual that there will be imports and exports which determine the demand for and supply of international currency and that there is efficient currency management by the regulatory agencies.

There remains always the responsibility upon the authorised dealer to see that L/Cs are opened at competitive prices of the import goods and the imported goods are essential for industrial or commercial uses and those are not considered unproductive. Banks should discourage L/C opening purely on profiteering basis without considering the impact of imports on the national economy. Their fund management should be very efficient.

The remark of the Hon'ble Foreign Minister a few days back that "there is no dollar crisis and that the problem is created by those going for over banking/unscrupulous transactions" is really praiseworthy and a timely warning for all.

Therefore, it is necessary that the authorised dealers in foreign currency follow the national objectives & guidelines in conducting foreign trade transactions and foreign currency utilisation to stop unethical deals.