The measures were successful in restoring orderly conditions in the foreign exchange markets, Jalan said in his April-September 1998 monetary and credit policy statement. During 1997-98, foreign currency assets of the RBI increased by $3.6 billion from $22.4 billion on March 31, 1997, to $26 billion on March 31.

Since January 16, 1998, foreign currency assets increased by $2.5 billion up to March 31, 1998. RBI governor said an important lesson of recent developments is that exchange markets, after a period of relative calm, can become extremely volatile within a very short period of time.