In order to further facilitate integration between domestic and overseas markets, banks with adequate capital strength may be encouraged to have higher limits for investments in overseas markets. This will help in developing further the forward markets. East Asian Experience: Relevance to India 11.
Speaking of correction in external value and of volatility in forex markets, the question that is often asked is “would India go the East Asian way?” In the early stages of BIS Review 76/1997  -5-  development, East Asian countries adopted a conscious policy of export-led growth stimulated by real depreciation of their currencies.