Aspects of Exchange Rate Behaviour and Management in India 1993-98

The change in regime in India from a multi-currency peg to a floating price convertibility provides sufficient motivation for a preliminary analysis of the country's exchange rate behaviour and management between 1993-99. Using international experience with floating exchange rates as a reference point, the paper examines these changes in a comparative perspective. The paper also documents the response of the central bank to exchange rate instability during this period.