In a bid to keep the rupee value stable and encourage India’s flagging exports, the Centre has been encouraging the Reserve Bank of India (RBI) to continue with its policy of buying dollars aggressively.
“We are supportive of RBI’s stance to buy dollars. This helps keep the rupee value stable and not push it up, given the huge forex inflows into India. a rise in rupee value would obviously hit our exports adversely,” said top finance ministry officials. The RBI, of course, did not pick the intervention route to help exporters, but its aim was to sanitise the huge foreign exchange flows.
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