A delegation from Tirupur comprising textile exporters and chartered accountants will visit South Korea this week to attend a joint conference with exporters there to discuss common issues concerned with volatility in currency market.
The Tirupur-delegation would be exploring the possibilities of joint cooperation with the Korean exporting fraternity to fight the cases of losses suffered by the companies globally owing to the purchase of forex derivatives. “Like the Tirupur exporters, the Korean exporters too collectively lost huge sums in derivative products to the tune of around $ 4 billion,” Mr. Raja Shanmugam, the team leader and a member of Cotton Advisory Board under the Union Government, told The Hindu. The meeting, scheduled at Seoul from November 14 to 18, would take stock of the situation which promoted the entry of illegal exotic forex derivative products offered by investment banks in the United States into the emerging economies like India, Korea and China, among others. “Instead of helping the exporters hedge the risks against the fluctuations, the products transmitted the financial crisis from the U.S. to these emerging markets and eventually sucked out the liquidity from the countries like India resulting in crisis for local exporters,” another member of the delegation S. Dhanajayan, who is also a senior member of the Institute of Chartered Accountants of India, said.