What is liberalised exchange rate management system?
Answers
Answer:
Liberalized Exchange Rate Management System", (LERMS for short), introduced with effect from 1.3.1992. O Under the LERMS, Exporters of goods and services and those who are recipients of remittances from abroad could sell the bulk of their foreign exchange receipts at market determined rates.
Answer:
India in the Union Budget 1992–93 announced the Liberalized Exchange Rate Mechanism System (LERMS) and in March 1993 it was operationalized. India delinked its currency from the fixed currency system and moved into the floating exchange-rate system under it. This system introduced partial convertibility of rupee. Under this system, a dual exchange rate was fixed under which 40 per cent of foreign exchange earnings were to be surrendered at the official exchange rate while the remaining 60 per cent were to be converted at a market-determined rate.
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