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How does RBI intervenes to influence the exchange rate? - Economics

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प्रश्न

How does RBI intervenes to influence the exchange rate?

लघु उत्तरीय
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उत्तर

The Reserve Bank of India (RBI) intervenes in the foreign exchange market to stabilize the rupee's value and control volatility. It does this by:

  1. Selling foreign currency, such as US dollars, to strengthen the rupee when it depreciates too much.
  2. To avoid excessive appreciation, purchase foreign money when the rupee gains too much strength.
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अध्याय 15: Balance of Payments and Exchange Rate - TEST YOURSELF QUESTIONS [पृष्ठ २९८]

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फ्रैंक Economics [English] Class 12 ISC
अध्याय 15 Balance of Payments and Exchange Rate
TEST YOURSELF QUESTIONS | Q 2. | पृष्ठ २९८
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