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RBI's move will boost near-term inflows: experts

RBI asks exporters to convert 50% of forex into rupees

Reuters  |  Mumbai 

Following are some of the expert comments after the Reserve Bank of India (RBI) made a dramatic move to prop up its battered currency today, requiring to sell half the foreign currency in their accounts, which helped to strengthen the in morning trade.

Subramanian Sharma, Director, Greenback Forex, Mumbai

"RBI's move to make convert 50% of their existing foreign currency earnings into balances is a significant move, will result in large near-term inflows.

"However, pent up demand exists and the USD/INR will trade in 52-53.80 band in near term."

Radhika Rao, economist, Forecast PTE, Singapore

"Steps to force to convert at least half of the earnings into accounts will improve supply at home and ease downward pressure on

"The is not alone in taking such measures, as we recollect that Indonesia had imposed similar regulations last year, forcing to retain earnings onshore.

First Published: Thu, May 10 2012. 10:50 IST