Consider the following statements regarding the Reserve Bank of India's foreign exchange market intervention and exchange rate management:

Statements

1. When the RBI sells foreign exchange reserves to support the rupee, it withdraws rupee liquidity from the domestic banking system, which is the opposite effect of sterilisation.
2. A depreciating rupee can provide a degree of export competitiveness by making domestically produced goods relatively cheaper for foreign buyers.
3. The RBI's intervention in foreign exchange markets is constrained by its mandate to target a specific exchange rate level under the current monetary policy framework.