‘Foreign exchange has emerged as a critical resource’

......Savithri V. Ramani, Senior Officer from the Reserve Bank of India, Chennai, detailed various activities of the Foreign Exchange Department of RBI. With Foreign Exchange Management Act (FEMA), which was effected from June 1, 2000, the objective of RBI had shifted from conservation of foreign exchange to facilitating external trade and payment and promoting the orderly development and maintenance of foreign exchange market in India. “RBI has brought in structural changes in exchange control administration and framed certain transparent regulations for dealing with various types of foreign exchange transactions. Foreign exchange has emerged as a critical resource with a direct relationship to economic performance at a time when the share of the external sector in the national output has soared significantly. The integration of the world economy over the past two to three decades has been dramatic and the real gainers from globalisation are the developing countries that have been able to seize the opportunities to participate in the process,” she added........

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