RUPEE DEPRECIATION

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RUPEE DEPRECIATION

  1. 1. GROUP- FINANCE
  2. 2. INDEX  Termology  Reason for rupee depreciation  Impact of rupee depreciation  Who’s are benefited  Who’s are not benefited  Measures taken by RBI  Conclusion
  3. 3. Un rha hai na tu o rha hu main…..
  4. 4. Before we start..  Repo rate  Reserve repo rate  Cash reserve ratio  Foreign Institutional Investor(FII)
  5. 5. Repo Rate The rate at which the RBI lends money to commercial bank is called repo rate.
  6. 6. Reserve Repo Rate The rate at which RBI borrows money from commercial bank is called reserve repo rate.
  7. 7. Cash Reserve Ratio The amount of fund that the bank have to keep with the RBI.
  8. 8. Foreign Institutional Investor(FII) Foreign Institutional Investor, an investor or investment fund that is from or registered in a outside of India.
  9. 9. How Currency Valued?  When the demand is greater than supply, the value of the currency increases and viceversa.
  10. 10. What is rupee???  The rupee is the name for the currencies of India  The first currency called "rupee" was introduced in the 16th century by Sher Shah Suri
  11. 11. Rupee Depreciation  More and more rupee are sold and dollar are brought. Example: suppose we import more crude oil from abroad so we provide them our currency for purchasing oil so our currency will go out outside.
  12. 12. Rupee Appreciation  More and more money are brought in our country an dollars are sold. Example- If export will increase in the country it will increase the value of rupee
  13. 13. Reason For Rupee Depreciation
  14. 14.  The Balance Of Payment(BOP) is the place where countries record their monetary transaction with the rest of the world  In the Current account, goods, services, income and current transfer are recorded  In the capital account, physical assets such as building or factory are recorded
  15. 15. Trade deficit
  16. 16.  Low forex reserves  Growth slowdown  Dependence on foreign money
  17. 17. Impact Of Rupee Depreciation Imported goods
  18. 18. FUEL PRICE
  19. 19. Tourism
  20. 20. Students studying abroad
  21. 21. RBI’s monetary policy
  22. 22. Who’s Benefited  Beneficial to the exporter  Benefited to the IT sector  Benefit to the hotel industry  Benefit to NRI investor
  23. 23. Who’s Not Benefited..  Impact on inflation  Impact on fiscal deficit  Negative impact on Indian student  Negative impact on FII flow to Indian market
  24. 24. solution
  25. 25. Measure Adopted By RBI  RBI increases restriction on gold import by cancelling margin funding to import gold. The government increased import duty on gold import to 10% from 15%  The government is allow 51% Foreign Direct Investment(FDI) in multi brand retail  RBI is considering increasing its import of crude oil from Iran, and pay for it directly in Indian rupees.
  26. 26. Cont..  RBI will conduct sale of government of Indian securities to suck up Rs 12000 crore  RBI increased the current overseas borrowing limit for banks from 50% to 100%
  27. 27. CONCLUSION Dollar on escalator.. Rupee on ventilator... Nation on ICU... We are in coma... Manmohan in honeymoon... Onion in showroom... God bless India
  28. 28. THANK… Q

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