ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
-A A +A

Movements in the Exchange Rate

The new indices of nominal and effective exchange rates of the rupee have been thoughtfully constructed and have been expanded rather significantly in their scope and coverage. What stands out in the coverage is the very rapid expansion in trade with Hong Kong and China, with the latter turning out to be the largest source of India's imports. The most illuminating revelation is that through the divergent interventions and non-interventions, the Reserve Bank of India has succeeded in pursuing an exchange rate policy that has sustained the effective rate "around the benchmark" - truly a commendable feat despite having to shock the market occasionally with sharp interventions to curb the speculative proclivities of some dealers.

Subscribers please login to access full text of the article.

New 3 Month Subscription
to Digital Archives at

826for India

$50for overseas users

Get instant access to the complete EPW archives

Subscribe now


(-) Hide

EPW looks forward to your comments. Please note that comments are moderated as per our comments policy. They may take some time to appear. A comment, if suitable, may be selected for publication in the Letters pages of EPW.

Back to Top