The policy is aimed at preventing  BIS Review 49/2005  3  destabilising speculation in the market while facilitating foreign exchange transactions at market rates for all permissible purposes. There is a wide consensus that India’s exchange rate policy has stood the test of time, despite several domestic and external developments, including the severe currency crises which characterised the 1990s.
Recent international research on viable exchange rate strategies in emerging markets has lent considerable support to the exchange rate policy followed by India. Global economy and India The debate in India has customarily been on the contours of the public policy in the context of increasing global economic integration.