A Project Report on “Swot Analysis of Indian Foreign Exchange Markets"

6895 Words Feb 15th, 2011 28 Pages
A project report on “SWOT Analysis of Indian Foreign Exchange Markets"

Table of Contents

1. History of Indian Foreign Exchange Market ........................................................................................... 3 1.1. Early Stages: 1947-1977 ................................................................................................................. 3 1.2. Formative Period: 1978-1992 ......................................................................................................... 4 1.3. Post-Reform Period: 1992 onwards ............................................................................................... 5 1.4. Measures Initiated to Develop the Foreign Exchange Market in India
…show more content…
In December 1971, the rupee was linked with pound sterling. Since sterling was fixed in terms of US dollar under the Smithsonian Agreement of 1971, the rupee also remained stable against dollar. In order to overcome the weaknesses associated with a single currency peg and to ensure stability of the exchange rate, the rupee, with effect from September 1975, was pegged to a basket of currencies. The currency selection and weights assigned were left to the discretion of the Reserve Bank. The currencies included in the basket as well as their relative weights were kept confidential in order to discourage speculation. It was around this time that banks in India became interested in trading in foreign exchange.

International Finance

Page 3

Formative Period: 1978-1992
The impetus to trading in the foreign exchange market in India came in 1978 when banks in India were allowed by the Reserve Bank to undertake intra-day trading in foreign

More about A Project Report on “Swot Analysis of Indian Foreign Exchange Markets"