During 1997, the RBI intervened in the spot and forward markets, both in the outright and swap segments. Outright spot and forward purchases of US dollars during 1996-97 amounted to $ billion and $ billion, respectively. Swap purchases amounted to $ billion. While spot sale of US dollars was marginal, forward and swap sales amounted to $ billion and $ billion, respectively.
The conduct of monetary policy  What does all this imply for the ECB’s choice of monetary policy strategy and the conduct of its single monetary policy?