Which one of the following is not the most
likely measure the Government/ RBI takes
to stop the slide of Indian rupee?

i. Curbing imports of non essential goods will lessen the demand for dollars and promoting export will help in increasing the flow of dollars into the country – helping control rupee depriciation.

ii. The Masala bond is directly pegged to the Indian Currency. If Indian borrowers issues more rupee denominated Masala bonds, this would increase liquidity in the market or increase in the rupee stock against few currencies in the market and this would help in supporting the rupee.

iii.ECB- it is a type of loan in foreign currencies, made by non-resident lenders. Thus easing conditions of ECB’s helps in receiving more loans in foreign currencies that would in increase of forex inflow – leading to rupee appreciation.

iv. Expansionary Monetary Policy- A set of policy measures such as increase in money supply by the RBI to stimulate economy. It cannot influece the variations of rupee value.