First, global oil prices have been inching up for quite some time now. To minimize the impact on the exchange rate because of this sudden withdrawal of dollars from India, RBI has been assiduously preparing itself by buying forward dollars. Rising oil prices will not be a costless affair. That is a fair assessment, since a lot of shale oil will enter the market if prices rise above the $60 mark. These risks are definitely not of the scale that almost tipped the economy into a crisis three years ago.

Source: Mint June 12, 2016 18:22 UTC