De-Dollarization: Is It A Gateway To Rupeefication? – Analysis eurasiareview.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from eurasiareview.com Daily Mail and Mail on Sunday newspapers.
The central bank intervenes in the spot and forwards markets to prevent runaway moves in the rupee. Changes in forex reserves also stem from valuation gains or losses.
The Indian central bank's 2013 playbook to buffer the domestic currency against steep declines and rebuild foreign exchange reserves is unlikely to prove fruitful in the current crisis as economic fundamentals are vastly different, analysts said.