Exchange rate management, Macroeconomics

Exchange Rate Management:

Following two  stage devaluation of the Indian rupee  in quick succession in July 1991, the  government introduced Liberalized  Exchange Rate System (LERMS) with  a view to  allow  the exchange rate  to  reflect the scarcity of foreign exchange. However in 1993, this system was replaced by a policy of unified exchange rate mechanism. Under this, exporters and other foreign exchange earners could convert their 100 percent foreign earnings at market rate. Thus presently, the exchange rate of the Indian rupee is determined by the supply and demand conditions in the foreign exchange market. RBI stands ready to intervene to maintain orderly market conditions and to curb excessive speculation.

 

Posted Date: 11/9/2012 4:38:49 AM | Location : United States







Related Discussions:- Exchange rate management, Assignment Help, Ask Question on Exchange rate management, Get Answer, Expert's Help, Exchange rate management Discussions

Write discussion on Exchange rate management
Your posts are moderated
Related Questions
Employment  Full employment of human and non-human resources or at least minimization of unemployment is an accepted goal of macroeconomic policy. Also the best way to alleviat

According to the imperfect-information model, when the price level is greater than the expected price level, output will _____ the natural level of output A) be greater than


if a 10% decrease in the price of product A brings about a 3% increase in the sales of product B, then a. product A and B are complementary b. the cross elasticity of demand

#qDiscuss the functions of money Illustrate your answeruestion..

Sustainability of Current Account Deficit: Theoretically speaking, a current account deficit can be sustained as long as the growth rate of national income exceeds the rate of

If the AD excess is $300 billion and the MPC is 0.8 how much fiscal restraint is required? What does the "debt held by the public" mean?

compare and contrast the monetarism economics and the keynesian economics

A) Suppose Jean Splicer, an investor, buys $300,000 of shares of stock in a diversified bundle of Bio-tech firms and exactly one year later sells those shares for $315,000. Assume

The amount of wealth that households and business desire to hold in the form of money balances is called the 'demand for money'. Individuals and firms have at their command only