In its latest assessment, the International Monetary Fund (IMF) has revised the way it classifies India’s exchange rate arrangement, shifting it from “stabilised” to “crawl-like.”
The IMF, in fact, reclassified, in 2009, just after the global financial crisis, the various exchange rate arrangements that were in vogue in 1998. The 2009 classification had two primary changes. First, it made a clear demarcation capturing the outcome of actual exchange rate policies on a de facto basis as opposed to the announced or de jure arrangement. Second, it specified the exact margin of fluctuation of the home currency around a reference rate
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