| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 963182 | Journal of International Financial Markets, Institutions and Money | 2012 | 11 Pages |
Abstract
⺠Reserve Bank of India (RBI) actively intervenes in the foreign exchange market. ⺠Intervention is better described by a nonlinear policy reaction function with a target range. ⺠The tolerance band of RBI for the movement in the exchange rate is asymmetric. ⺠Response to changes in exchange rate is stronger outside the target range than within range. ⺠Such a policy response accounts for the large build-up in foreign exchange reserves in India.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Naveen Srinivasan, Sudhanshu Kumar,