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

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Nuances of the Reserve Bank's Exchange Rate and Reserves Management

There is a widely-held view that due to widening inflation differentials in India vis-à-vis the advanced economies, the rupee is, infact, overvalued in real terms and a downward adjustment would help in boosting sagging exports and in narrowing down the trade deficit. This note attempts to address related issues and suggests a way forward.

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