How RBI and Govt Could Consider to Protect the Rupee

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Jul 102013
 
How RBI and Govt Could Consider to Protect the Rupee

The fall in the rupee to record lows has raised the prospect that the government or the central bank could take steps to support a currency seen particularly vulnerable because of a record high current account deficit. Below are measures the RBI and govt could consider to protect the rupee: Dollar-window for oil companies: The RBI could open a dollar window for oil companies to buy dollars directly from the central bank instead of buying from markets, but it would drain foreign exchange reserves. Dollars […]