Home > Business > Budget 2004-05 > Report

Survey for flexible exchange rate

July 07, 2004 16:40 IST
Last Updated: July 07, 2004 16:44 IST


In the face of concerns over appreciating rupee eroding export competitiveness, the pre-Budget Economic Survey on Wednesday advocated a flexible exchange rate policy with the ability to intervene as and when necessary.

Economic Survey 2003-2004: Complete Coverage

"Exchange rate management policy needs to balance build-up of reserves and liquidity on one hand and maintaining external competitiveness with low inflation and interest rates on the other. Hence, the policy of flexibility in exchange rate together with the ability to intervene, if and when necessary, needs to be continued," the Survey said.

The Indian rupee, which started strengthening from June 2002 onwards, on monthly average basis appreciated 8.8 per cent by March 2004.

On an annual average basis, vis-a-vis the US dollar, the rupee after depreciating by 1.5 per cent in 2002-03, appreciated by 5.3 per cent in 2003-04.

Exporters had raised a hue and cry on the grounds that appreciation in rupee value vis-a-vis US dollar was eroding their competitiveness and sought RBI intervention or a fixed exchange rate policy on the lines of China.

Article Tools
Email this article
Top emailed links
Print this article
Write us a letter
Discuss this article



Related Stories


Economic Survey eyes 8% growth

7-8% growth achievable: Montek

Survey seeks change in FDI norms



People Who Read This Also Read


ESPN, Zee to submit new bids

JPC & Govt nominee ouster from UTI

This one is for Shunu Sen








© Copyright 2004 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.


Budget 2004-05: The Complete Coverage | Rail Budget 2004-05




Share your comments







Copyright © 2004 rediff.com India Limited. All Rights Reserved.