What is the impact of the changes in the ECB guidelines?

 SURENDRA ROSHA

 Head of Sales, HSBC

 Treasury & Capital Markets

 The recent changes in the external commercial borrowing (ECB) guidelines issued by the ministry of finance seem aimed at restricting the inflow of foreign currency through this route and the resultant impact on foreign currency reserves and domestic liquidity.

 With the rupee appreciating approximately 5 per cent since the start of this year and US interest rates remaining low, foreign currency has been the preferred choice of funding for some corporates.

 The shortage of onshore dollars made ECB