Why fall in rupee

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Why fall in rupee

  1. 1. Deprecation Of Rupee More and morerupees are brought inour country anddollars are sold More and morerupees are sold anddollars are brought
  2. 2. Impact ↑Imports ↑Depreciation In Rupee ↑Inflation ↑Interest Rates ↓Fixed Income ↓ Growth ↓Jobs Importers Sells Rupees & Buy Dollars There Is No One To Buy Rupee How Will It Appreciate? High Purchase Of Dollars → more Depreciation In Rupee
  3. 3. FY12 EstimatesImports>Exports$470bn>$320bn-$150bn Trade Deficit+$90bn Service Revenue-$60bn Net Deficit
  4. 4. Productive And Unproductive Assets PRODUCTIVE ASSET 11BN CRUDE OIL 1.REFINED 2.CREATES JOBS ETCIMPORTS 35BN UNPRODUCTIVE ASSET 10BN GOLD 1. 1/3rd OF IMPORTS 2. STORAGE 14BN OTHER
  5. 5. Reason Every year→1000tones of gold is imported Overall gold=total GDP almost What if no gold imports? Exports=imports So if u put the same money in investments your income will increase
  6. 6. Loan taken Imports faster than exports impacting stock market,corporates etc Why demand for dollar is high? India has taken loan from Europe Europe is worsened Foreign banks are not giving loans to India. Instead pressurizing to giveback loan→pressure on rupee
  7. 7. Chinese currency China not affected? Whole country is facing problems why not china? This is because Yuan is always remains stable neither depreciates norappreciates.
  8. 8. Solution? To balance demand & supply Proper implementation of monetary policy and fiscal policy in ourcountry Stability in imports & exports,etc.

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