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Why you should be betting against the rupee now - Firstpost

Source: money/studies/wp0028.pdf

Chronology of India’s exchange rate policies 

• 1947 (When India became member of IMF): Rupee tied to pound, Re 1 = 1 s, 6 d, rate of 28 October, 1945 

• 18 September, 1949: Pound devalued; India maintained par with pound 

• 6 June, 1966: Rupee is devalued, Rs 4.76 = $1, after devaluation, Rs 7.50 = $1 (57.5%) 

• 18 November, 1967: UK devalued pound, India did not devalue 

• August 1971: Rupee pegged to gold/dollar, international financial crisis 

• 18 December, 1971: Dollar is devalued 

• 20 December, 1971: Rupee is pegged to pound sterling again 

• 1971-1979: The Rupee is overvalued due to India’s policy of import substitution 

• 23 June, 1972: UK floats pound, India maintains fixed exchange rate with pound 

• 1975: India links rupee with basket of currencies of major trading partners. Although the basket is periodically altered, the link is maintained until the 1991 devaluation. 

• July 1991: Rupee devalued by 18-19 % 

• March 1992: Dual exchange rate, LERMS, Liberalised Exchange Rate Management System 

• March 1993: Unified exchange rate: $1 = Rs 31.37 

• 1993/1994: Rupee is made freely convertible for trading, but not for investment purposes 

Why you should be betting against the rupee now - Firstpost