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REGISTERED NO. D. (D)-72

The Gazette of India

EXTRAORDINARY

PART I—Section 1

PUBLISHED BY AUTHORITY

No. 19] NEW DELHI, SATURDAY, JANUARY 17, I976/PAUSA 37,1897

Separate paging is given to this Fart in order that it may be filed as a separate compilation.

MINISTRY OF COMMERCE

PUBLIC NOTICE

IMPORT TRADE CONTROL

New Delhi, the 17th January 1976

SUBJECT.—Revision of composite rates consequent on the exchange value of rupee-

link-up with basket of currencies with effect from 25th September, 1975.

No. 8-ITC(PN)/76.—Attention is invited to the former Ministry of Foreign Trade Public Notices No. 110-ITC(PN)/71, dated the 1st September, 1971 and No. 15-ITC(PN)/ 72, dated the 28th January, 1972, prescribing the method of calculations of new composite rates of exchange, consequent on the floatation of various major international currencies in August, 1971 and the subsequent amendments thereto issued from time to time. Atten- tion is also invited to Ministry of Commerce Public Notice No. 75-ITC(PN)/75, dated the 1st August, 1975.

2. Composite rates of exchange are now being applied for (he recovery from the importers, of the rupee equivalent of the foreign currency disbursements in respect of the cost of imports under the direct payment procedure, as applicable to imports financed from foreign loans and credits and grant assistance from external sources,

3. Consequent upon the issue of the Government of India, Ministry of Finance, Department of Economic Affairs, order S.O. No. 535-E, dated the 24th September, 1975 under Section 40 of the Reserve Bank of India Act, 1934 announcing a revision in the exchange arrangements as from 25th September, 1975, the Reserve Bank announced new spot rates for the purchase and sale of the pound sterling with effect frome the same date, and the Foreign Exchange Dealer's Association of India, Bombay, has fixed the authorised dealers' B.C. selling rate for pounds sterling afresh with the approval of the Reserve

( 7 1)

72 fHE GAZETTE OP INDIA EXTRAORDINARY t *W i-rSisfc.. tf

Bank and has advised the same to the authorised dealers in foreign exchange. Under the new arrangement, the exchange value of the Indian Rupee will be d e t S n ed CS reference to exchange rate movements of a selected number of foreign currencies, but the pound sterling will continue to be used by the Reserve Bank of India as its currency of intervention. The composite rates of exchange as applicable to the disbursements to ttoreignsuppliers towards the cost of the imports under the direct payment procedure as applicable! to imports paid for by foreign aid, will accordingly be determined in future in the following manner:—

(i) The rate of exchange for the foreign currency to the Rupee will be determined with reference to the London daily selling rate for the particular foreign currency ruling on the date of payment to the foreign supplier (which rate is expressed in terms of £ 1 =X U.S. dollars, Y French Francs, Z Dutch Guilders etc. and can be (readily ascertained from, any authorised dealer in foreign, exchange) and the authorised dealers' B.C. selling rate for pound sterling expressed as Rs. 100 == £ as advised by the Foreign Exchange Dealers Association of 'India to authorised dealers in foreign exchange and ruling on the date of payment to the supplier (this rate of exchange will be calculated to the fourth decimal place).

(ii) A margin of 1 per cent of the rate arrived at as in (i) above will be added to that rate and the resultant figure will be rounded off at the second decimal place to the next higher integer, in respect of all currencies except Japanese Yen and Italian Lira, for which the rounding off will be to the next higher integer at the third decimal place.

(iii) The rate arrived at after the. addition of 1 per cent and rounding will be the composite tote of exchange.

4. The method of working out the composite rate under the new arrangement in res- pect of Canadian Dollar, Yen^ French Franc, and "Dutch Guilder according to the proce- dure indicated in paragraph 3 above is illustrated below:—

(i) Authorised dealer's B.C. |sellin£ rate for 25th September, 1975 is Rs. 100= £ 5.4270 i;e. £ l=±Rs. 18.4263.

(ii) Selling rates of exchange quoted in the London Market on 25th September, 1975 are:—

£ l = C a n. $2.0980

£ l = J a p. Yen 619

£ l = F r. Franc. 9.2450

£l=Dutch Gldr. 5.5700

(iii) Composite rates for Canadian Dollar, Japanese Yen, French Franc and Dutch Guilder applicable as on 25th September, 1975 are:

(a) Canadian Dollar

Rs. 184263

Rate of exchange '-J—• • =Rs. 87828

2- o 980

Rs. 0-0878

Add 1% margin or 8-88

Rs. 8-8706

G^mppsite rate of exchange =1 Can. $=Rs. g-88

(b) Japanese Yen'.

18-4263

Rate of Exchange " =Rs. 0-0298

619

Rs. 0-0003

Add 1% margin —'• "-¹ *- or 0-031

Rs. 00301

Composite rate of exchange Yen i=Rs. 0-031

tfoftf i—Sic. i] THE QAZ&TtK Of tNftlA EXTRA6ft6)iNfAfcY %%

18 4263

Rate of exchange ' '—-J =Rs. 19931 9-2450

Rs. 00199

Ad4 1% margin

or Rs. 2-02

Rs. 2-0130

Composite rate ofi.'\'chun£e=Fr. Fr. i " R s. 2-02

(d),: flutch Guilder :

1^-4263 Rate of exchange —<—="Rs. 3-3081 5-5700

Rs. 0-0331

A'W 1%'mtfgin 1 . or Rs. 3'35

3'34ia

G)mp)3ite rate of exchange =1 Dutch^Guilder i=Rs.3-35.

5. All the importers holding import licences should not© the above changes in the method of determination of the composite rate of exchange ccrrfully and ensure that the necessary rupee deposites are made by them ithrough their banks calculated in the above manner. 1

6. The various authorised dealers in foreign exchange are also being advised separately by the RBI about the revised arrangement for their information and guidance.

I4 The above instructions will lake effect from the 2tflh September, 1975.

D. D. JOSHI,

Chief Controller of Imports and Exports.

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