The policy mix to be applied depends on the perception and reaction of many people, large number of economic entities in the country and abroad. Such fine tuning has proved to be too much even for the European Central Bank!
However, it is beyond doubt that appreciation of the exchange rate has reduced gross income of many exporters below the level that would otherwise have been achieved if there were no appreciation, assuming of course, that they have not protected themselves from currency risk by entering into forward trade agreements. At the same time, reduction in net income was much lower.