Further, with the official exchange rate nearly converging to market exchange rate, there was not much incentive for routing remittances through unofficial exchange brokers. The rapid growth of private transfers reinforced the trade account adjustment to make the current account situation much more comfortable (Chart 4). 4  BIS central bankers’ speeches  During the 1980s, BoP again came under stress.
The second oil shock led to a rapid increase in imports in early 1980s. Oil imports increased to about two-fifths of India’s imports during 1980–83. At the same time, India’s external sector policy was changing towards greater openness. Various measures were undertaken to promote exports and liberalise imports for exporters during this period. However, several factors weighed against external stability.