At present the country has adopted-

Explanation

The then Finance Minister Manmohan Singh implemented the Liberalised Exchange Rate Management System (LERMS) from 1992–93 on the current account. Under LERMS, 40% of foreign exchange earnings were converted at the exchange rate fixed by the Reserve Bank of India, and the remaining 60% at the market-determined rate. In 1993–94, the then Finance Minister Manmohan Singh declared the rupee fully convertible on the trade account (exports + imports). Moving further in this direction, in 1994–95 the rupee was made fully convertible on the current account of the balance of payments. At present, the rupee is fully convertible on the current account and partially convertible on the capital account. (339) ## Page 38