7 Steps Indian Policy Makers Can Take To Prevent A Rupee Drop

Bangalore: The Indian rupee has declined to an all-time low of 59.82 to the dollar and foreign investors who have invested money on Indian stocks are mainly affected because of this massive decline. So, to prevent the rupee depreciation, Indian policy makers need to consider some of the measures to cover up the losses.

“The Economic Times” has listed out few measures that policymakers could take to prevent the rupee drop.

1. Exporters Should Buy Rupees

The Reserve bank of India could ask all the exporters to convert some part of their foreign earnings in to rupee so that it can bring temporary relief to the declined rupee rate.

2. Moral Influence

To protect the rupee, the government may possibly rework on the strategy that they used when overseas rates seemed attractive. The RBI could also persuade Indian banks and financial institutions to raise their funds in dollars and lend them locally.

3. Delay Import Payments

The Indian government can delay the import payments to prevent the rupee decline. Normally, import payments are done at the month end but to cover up the losses, RBI could take this step to cushion the decline, which has not taken lately.

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