The Central Bank (CB) is due to announce a series of measures aimed at alleviating a possible foreign exchange crisis, when it presents its RoadMap for 2009 on January 2.
The CB said in its monthly review for December that the US dollar–rupee exchange rate is stabilising as a major part of short-term capital flows by way of Treasury bills and bonds have already flowed out of the country and the large stock of oil bills for imports at high petroleum prices have already been settled. “The government is also exploring ways of raising external finances from alternative sources. These measures are expected to be announced in January 2009,” the CB said in a statement.
It said the sharp deceleration in the monetary aggregates, together with recent favourable developments in relation to international commodity prices are expected to bring down inflation at a rate faster than previously expected.