SOUTH-The Counter-Offensive

resulted in a backdoor devaluation of the rupee below its pre-Smithsonian parity of Rs 7.50 per dollar.
The official parity of the rupee is buttressed through various devices like subsidies and concessions for exports. In the circumstances, the chances of the rupee getting upvalued are practically nil. In fact, one may and say that in reacting to any changes in the parities of the world's major currencies it ought to be the objective of government policy to see that the rupee docs not get upvalued against any of these currencies. It was perhaps due to a belated realisation of this basic truth that the decision to continue to link the rupee to the pound sterling at the current central rate as well as the spot rate was announced. Though the new rates would show a revaluation of the rupee