Master stroke by RBI to curb Rupee depreciation

Looking into the uninterrupted slide of Rupee and the way element of speculation has dragged the rupee down to Historical low of 54.30  Reserve Bank of India has taken some immediate steps to stop any more Rupee depreciation. The impact has been seen today Morning and the Rupee has appreciated almost One rupee in 16^th Dec early morning trade. This was the best option available to RBI as it was not able to intervene to the Market aggressively due to not so comfortable FX reserve position of India and Expected Loan repayment of around USD 100 Billion in 2012. As per the latest guidelines forward contracts booked by residents irrespective of the type (whether capital or current account transactions) and tenor of the underlying exposure, once cancelled, cannot be rebooked. This is applicable to all FC-INR transactions. For importers taking Forward Contracts on Past performance basis the limit has been substantially reduced to 25 percent of the eligible limit calculated as per the existing guidelines. Any Forward contracts booked on or after December 16, 2011 under past performance basis by both Importers and Exporters will be on deliverable basis and In case of any cancellation, no gains will be passed on to the clients. This will be applicable for both FC-INR and FC-FC transactions. Further all cash/TOM/spot transactions shall be undertaken for actual remittances only / delivery only.  For the Banks also lot of restriction has been imposed. Net Overnight Open Position Limit (NOOPL) of Authorized Dealers has been reduced across the board...  Intra-day open position  should also  not exceed the existing NOOPL.  In addition to this Master stroke of 15^th evening to curb speculation in the Indian FX Market RBI has also taken series of measures during the last few Months to encourage easy Inflow of Forex Money to India . FII limit in Government and corporate bonds has been increased by USD 5 bn each. All-in-cost ceiling for ECBs with tenure between 3-5 years has been increased by 50 bps to 6m Libor +350 bps, Interest rate ceiling on NRE term deposits increased by 100 bps to Libor/Swap rate plus 275 bps. Rates ceiling on FCNR (B) increased by 25 bps to Libor/Swap rates plus 125 bps, Increase in the all-in cost ceiling on trade credits to 350 bps over 6m Libor as against 200 bps. All these steps may or may not be enough to ensure Rupee appreciation in the Coming Months. The Other concerns of Indian Economy like Higher Inflation rate, Decreasing IIP and GDP growth rate, Increasing Trade & Fiscal deficit will act as a deterrent to attract FDI and FIIs Money to our Country. Whatever may be the factors I am confident RBI will use its all tools & experience to take India Out of the Crisis.