Sei sulla pagina 1di 7

Impact of the cr|s|s on Ind|a

W lrom 1973 Lo 1992 Lhe rupee exchange raLe
was offlclally deLermlned by 88l
W lndla experlenced balance of paymenLs crlsls
ln 1991
W Some ma[or flnanclal reforms were Laken
whlch acLed as an lnsulaLor agalnsL LasL Aslan
W Weak Lrade llnkages wlLh LasL Aslan counLrles
W 9 growLh relaLlvely unaffecLed
own Lo 33 from expecLed 4
W 8upee depreclaLed by 13 only as compared
Lo LhaL ln Malaysla 1hal and SouLh korean
currencles whlch were beLween 2333 and
70 ln Lhe case of lndonesla
W I|oat|ng exchange rate wlLh some
lnfluence by 88l durlng Lhe perlod
W SLrong fundamenLal growLh wlLh serv|ce sector
W lull caplLal converLlblllLy was noL allowed
W ShorL Lerm exLernal debL was LlghLly conLrolled
Intervent|on po||cy by kI
W 88l has used lLs lnLervenLlon sLraLegy Lo
Lemper Lhe volaLlllLy of Lhe exchange raLe
followlng perlods of large flucLuaLlons durlng
Lhe crlsls perlod
,onetary measures
W lncrease ln lnLeresL raLes and lncreased Lhe reserve
W C88 was lncreased by 1
W llxed repo raLe of 43 was lnLroduced Lo absorb
surplus llquldlLy
W 8ank raLes rose from 9 Lo 11
W 1hus 8upee began Lo sLablllze
kestr|ct|on on Cap|ta| f|ows
W CaplLal ouLflows by resldenLs were hlghly
W 9orLfollo lnvesLmenLs by forelgn lnvesLors
could be made Lhrough llls only
W Cverall caps were seL on exLernal borrowlng