The FMLG will also have a Foreign Exchange and Fixed Income and Derivative Market subcommittee, which will engage on the safe and efficient functioning of these underlying markets, as well as derivative-related developments. Open market operations Managing the overall liquidity in the money market is of the utmost importance to the successful implementation of monetary policy.
Soon after the devaluation of the rupee in July 1991, there was a move in March 1992 to a regime of partial convertibility (essentially a dual exchange rate). In March 1993 the regime changed to a uniform exchange rate of the rupee which was market-determined – a system which remains in place to date. In August 1994, India moved over to current account convertibility.