Even when adjusted for foreign exchange differential, the full-year change would still be higher by, at least, 10 per cent. The change is expected to lead to a market-led exchange rate regime and a gradual easing of the market rigidity. Capital market players have described the new tax as a disincentive to investors, including foreigners. Today, many economists also consider the current official exchange rate as below the market rate. For the medium to long-term, the exchange rate cannot be stable if the market is not transparent and accountable.

Source: The Guardian February 07, 2022 03:19 UTC