Consequently, the rupee moves in response to daily supply and demand patterns against the backdrop of these strategic restrictions. In turn, these restrictions can be lowered in response to strategic considerations, such as the increasing demand for foreign funds for infrastructure investment, which has been done over the past year.
But, to return to the issue of resilience in the face of the crisis of 2008, it could be argued that the preference ordering reflected in the capital account management framework helped to minimise the severity of the impact on the domestic economy. Policy challenges Let me repeat the basic argument I am advancing.