Exchange rate policy and modelling in india

Exchange rate fluctuations affect the value of international investment portfolios, competitiveness of exports and imports, value of international reserves, currency value of debt payments, and the cost to tourists in terms of the value of their currency. Movements in exchange rates, therefore, have significant implications for the economy's business cycle, trade, and capital flows. This book provides a comprehensive analysis of the foreign exchange market in India in terms of participants, instruments and the trading platform, as also turnover and forward premia. The book covers four broad areas: (i) various facets of economic policy with respect to the exchange rate

1. Introduction. 2. Exchange Rate Regimes. 3. Exchange Rate and Exchange Rate Policy. 4. Foreign Exchange Market Structure and Turnover. 5. Manifestations of the Global Financial Crisis. 6. Approach to Capital Account Liberalization. 7. Capital Flows and Central Bank Intervention in the Foreign Exchange Market. 8. Modelling and Forecasting the Exchange Rate. 9. Concluding Observations. Annexure. Data Definition and Sources. References. Index.

Pami Dua is Professor and Head, Department of Economics, Delhi School of Economics, University of Delhi. Rajiv Ranjan is Director, Department of Economic Analysis and Policy, Reserve Bank of India, Mumbai.