The continued weakness of the rupee has triggered speculation this week that policymakers are about to adopt special measures to shore up the currency. One possibility is the reintroduction of a scheme used during the “Taper Tantrum” to attract foreign currency deposits from Indians resident overseas. This proved effective in stabilising the rupee in 2013, but we think there would be little merit in reintroducing it now.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services