In India, the second Report of the Narasimham Committee has recently addressed a number of vital issues pertaining to the health and stability of the financial system and the action that is necessary to strengthen it. Some of these recommendations have been implemented in the recent monetary and credit policy announcements.
Figure 4 New Zealand trade-weighted real exchange rate  (Source: RBNZ) Another important point can be seen in the graph, and that is that, although some exporters are particularly prone to measuring exchange rate appreciations from the very bottom of an exchange rate cycle, it is as unrealistic to imply that the bottom of the cycle is in some way the norm as it would be to imply that the top of the cycle is the norm.