The Forum of Free Enterprise is a non-political organization founded in 1956 by A. D. Shroff and has been established to educate public opinion in India on free enterprise and a democratic way of life. The Forum publishes booklets to further its objects. The following booklet titled “External Value of the Rupee- From Crisis to Convertibility” was published on January 14, 1993, and was authored by R.K. Seshadri. The author begins by describing the changes, which have taken place in the international financial system after the end of the second world war and more particularly after the abandonment of the convertibility of the US dollar in August 1971. He notes that India has relied heavily during the last ten or fifteen years on measures to boost exports and on exchange depreciation as the primary means of doing so. He further argues that in this process, inadequate attention has been paid to the ramifications of exchange rate policy, and the repercussions of a continuing depreciation in the external value of the rupee. He calls for a critical examination of the relevance and utility of the devaluation of the Indian rupee as an aid to export promotion. He also highlights that any competitive advantage in prices, which may be obtained temporarily by devaluation, can be offset by many nonfinancial considerations like tariff barriers and protectionism in the importing countries. He suggests the steps, which India has to take during the transition to full convertibility. These steps include implementing fiscal and financial discipline at all levels and paying attention to the basic and nonfinancial problems which seem to impede the growth in our exports. He concludes by suggesting that we will have to join the international mainstream and live with the global currency markets. Moreover, he suggests, we should also try to ensure that with full convertibility the Indian rupee has stable and predictable value and that it is one of the world’s respectable currencies.