Credit Exposure Squeezed to Help Rupee There is widespread concern about the fate that awaits the Indian rupee as it hurtles in free fall. The Reserve Bank of India (RBI) chose to target short-term rupee liquidity in order to contain currency volatility. The demand for foreign currency also increased and is affecting the price of the rupee against USD. The government aims to reduce the credit exposure by the banks and reduce the liquidity to ensure that the rupee is stronger. Credit exposure is the total amount of credit extended to a borrower by a lender. The magnitude of credit exposure indicates the extent to which the lender is exposed to the risk of loss in the event of the borrower's default. Credit exposure can be minimized...