Mid-term Review of
Monetary and Credit Policy for the year 2003-04
· Orderly conditions witnessed in the forex market.
· Rupee appreciated against US dollar but depreciated against Euro, Pound sterling and Japanese yen.
· Foreign Exchange reserves up by US $ 17.2 billion since end-March to US $ 92.6 billion by end-October 2003, and are at comfortable level.
· Exchange rate management, as in the past, based on flexibility, without a fixed or pre-announced target, but with ability to intervene.
· RIBs of US $ 5.5 billion redeemed without any adverse impact on financial market and reserves.
· In the first half, in US dollar terms, exports are up by 10 per cent and import growth is high at 21.4 per cent reflecting a pick up in economic activity, as evident from higher capital goods imports.