Exporters' body Federation of Indian Export Organisations has viewed that the Reserve Bank of India's recent move on EEFC and forward contract will help the country's export sector.

"Allowing the exporters to cancel and rebook forward contracts to the extent of 25 percent of the total contracts booked for hedging their exposure will provide requisite flexibility and would enable the exporters to re-book the contract which are often a result of the buyer cancelling a scheduled remittance due to demand –supply and pricing in the international market," said FIEO president M Rafeeque Ahmed in a press statement on Tuesday.

He added the restoration of  the erstwhile stipulation of allowing credit of 100 percent foreign exchange earnings to the EEFC accounts subject to the condition that the sum total of the accruals in the account during a calendar month should be converted into Rupees on or before the last day of the succeeding calendar month after adjusting for utilization of the balances  will give  a lead time of 30 to 60 days for settling import commitments  saving costs of currency conversion if one had to buy the same from the market.

"This will particularly benefit, Gems and Jewellery, Electronics, Petroleum, Plastics sector as well as Merchanting trade," added the FIEO chief.