The Central Board of Indirect Taxes and Customs (CBIC) is in the process of unveiling an automated system of publishing currency exchange rates to ease the process of export and import in 22 currencies, the Ministry of Finance said in an official statement on Thursday.
The online Exchange Rate Automation Module (ERAM) will be launched on July 4 next month.
This new system aims to automate the process of calculating the value of imported and exported goods based on the exchange rate as per Section 14 of the Customs Act.
The online Exchange Rate Automation Module (ERAM) system will replace the existing manual process of notifying exchange rates through a notification, as per the statement.
“ERAM is a significant step towards trade facilitation as the exchange rates of 22 currencies would now be published online in advance for ease of consumption by all importers and exporters,” the statement added.
According to CBIC, these exchange rates will be made available on the ICEGATE website twice a month i.e. on the evening of the 1st and 3rd Thursdays of the month and will be effective from midnight of the following day.
The CBIC website will have a link that directs users to the ICEGATE website, where the rates that have been published are available for viewing.
An automated system of publishing currency exchange rates is designed to gather, process, and disseminate real-time or near-real-time exchange rate information to users. It collects raw exchange rate data from various financial markets and trading platforms. These sources might include forex brokers, banks, and global financial news services. It also helps the operation of currency exchange rates smooth by managing APIs, aggregation of data, and databases among others.
By automating these processes, the system can provide timely and reliable exchange rate information to users, which is crucial for financial decision-making in areas like trading, investment, and international business transactions.
Under the new system, the facility will be available for Australian Dollar, Qatari Riyal, Bahraini Dinar, Saudi Arabian Riyal, Canadian Dollar, Singapore Dollar, Chinese Yuan, South African Rand, Danish Kroner, Swedish Kroner, EURO, Swiss Franc, Hong Kong Dollar, Turkish Lira. Kuwaiti Dinar, UAE Dirham, New Zealand Dollar, US Dollar, Norwegian Kroner, Japanese Yen, Pound Sterling, and Korean Won.
