Rupee Depreciation - Discussion

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Saturday Discussion on Rupee Depreciation

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  • This is another option for an Overview slide.
  • What will the audience be able to do after this training is complete? Briefly describe each objective how the audiencewill benefit from this presentation.
  • What will the audience be able to do after this training is complete? Briefly describe each objective how the audiencewill benefit from this presentation.
  • What will the audience be able to do after this training is complete? Briefly describe each objective how the audiencewill benefit from this presentation.
  • What will the audience be able to do after this training is complete? Briefly describe each objective how the audiencewill benefit from this presentation.
  • What will the audience be able to do after this training is complete? Briefly describe each objective how the audiencewill benefit from this presentation.
  • What will the audience be able to do after this training is complete? Briefly describe each objective how the audiencewill benefit from this presentation.
  • What will the audience be able to do after this training is complete? Briefly describe each objective how the audiencewill benefit from this presentation.
  • Rupee Depreciation - Discussion

    1. 1. Welcome to Saturday Discussions @ CPPR Dr. D DHANURAJ
    2. 2. • Familiarize yourself with Value of the Rupee1 • Explore new environment and context2 • What are the remedies suggested for an improved economy? 3 Today’s Overview
    3. 3. Rupee in News!!! • Rupee closes in on 69 vs dollar its biggest day fall in 18 years • Outgoing RBI Governor blames Government for sinking Rupee • Gold shines at record high • Rupee opens at record low • Rupee posts biggest single day rise in 15 years • Country faced with difficult economic situation: PM
    4. 4. Depreciation of Indian Rupee • Real/Relative Value of currency • Influencing Policies • Take Away
    5. 5. Real/Relative Value for currency Demand Vs Supply • Imports/Exports • Employment • Interest rate • Inflation • Growth rate • Trade deficit • Performance of equity market • Foreign exchange reserves • Macro economic policies • FIIs and FDIs • Commodity prices • Geopolitical equations etc………………..
    6. 6. Demand and value of a currency • When income increases, consumption increases – It can lead to higher import of goods leading to high demand for foreign currency and weakens the local currency • Balance of payment – Country sells more goods and services than what it imports – It is the recipient of foreign currency and strengthens local currency
    7. 7. Demand and value of a currency • Changes in the interest rates – High interest rates for NRIs can attract more savings and more foreign currency, leading to strengthening of the rupee • Monetary policies – Cash reserve ratio – Open market selling – Tightening of fund flows – Statutory liquidity ratio – Repo rate
    8. 8. Demand and value of a currency • Inflation – Good and services are excess and money is in excess supply – Purchasing power of currency falls – Imports becomes costlier – Exporters gain
    9. 9. Influencing Policies • Generate employment opportunities – Manufacturing policy 2010 – Improve Basic infrastructure • Fiscal management – Food Security Bill – Subsidy bills – GST – Import bill • Improve exports
    10. 10. Take Away – Build the confidence in the investors with consistent policies – Not only opening the market, but enhance ‘Doing Business’ Climate – reduce the import bill – Effective utilization of natural resource wealth – Counter ways to eliminate stashing money abroad
    11. 11. Questions???
    12. 12. Thank you!!! 

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