Foreign exchange intervention has limited long-term effectiveness beyond short-term benefits, and countries' currencies should be allowed to adjust to global shocks, a senior official at the International Monetary Fund (IMF) said. Krishna Srinivasan, Director of the IMF's Asia and Pacific Department, said at a press conference in Mumbai on Wednesday that countries that allow their exchange rates to float benefit more, and exchange rates should be the "first line of defense" in absorbing pressure. These remarks come as the Reserve Bank of India (RBI) takes measures to defend the rupee.