Depreciation of Rupee.pptx
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The document discusses the depreciation of the Indian rupee over time. It provides historical context starting from 1947 when the rupee was pegged 1:1 with the US dollar. Since then, various economic and political factors like wars, balance of payments crises, and changing monetary policies have led to periodic devaluations of the rupee. Recently, rising crude oil prices, inflation, and higher trade deficits have contributed to the rupee falling to its lowest level against the dollar in 2018. The document outlines some advantages and disadvantages of a weaker rupee as well as measures the government and RBI can take to manage its depreciation.
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Devaluating indian currency
The document discusses the devaluation of the Indian rupee over time. It notes that the rupee was initially pegged to the US dollar at parity but has devalued significantly since India's independence. Major devaluations occurred in the 1960s-1970s due to wars and inflation, in the 1980s due to political instability, and in 1991 during economic liberalization when the rupee hit 24.58 rupees to the dollar. More recent fluctuations are due to factors like the US dollar strengthening, a rising current account deficit, and insufficient foreign investment inflows and outflows. Devaluation impacts trade, tourism, GDP, imports, exports, and foreign investment.
USD vs INR
This presentation is about the Indian Economy and the strength of USD against INR. This slideshow presents the causes and the solutions of gaining more strenght.
Impact of devaluation of Indian rupee
THE 1991 DEVALUATION, WHAT WENT WRONG, EFFECT OF DEVALUATION ON ECONOMY, EXPORTS VS FALL IN THE INDIAN RUPEE VALUE: THE VOLUME EFFECT.
Falling Rupee
The Indian rupee has depreciated significantly against the US dollar over time. It was initially a silver-based currency but became paper-based after WWI due to silver shortages. The value of the rupee declined during the 1960s due to war and drought, trading at 6 pence compared to 24 pence previously. Economic crises in the 1990s and 2013 further weakened the rupee. Its current fall is due to factors like a rising trade deficit, slowing GDP growth, and foreign investor withdrawals amid global uncertainties. For the rupee to stabilize, India must balance imports/exports and implement proper monetary and fiscal policies.
Erosion in indian currency
A deficit in India's trade balance and lower foreign investment inflows put downward pressure on the Indian rupee in 2014-2015. A Chinese devaluation of the yuan further weakened the rupee by making Chinese exports more competitive. Additionally, fears over slower Indian economic growth and declines in foreign institutional investment out of Indian markets exacerbated pressure on the currency. Offloading of Indian assets by foreign investors increased demand for U.S. dollars and contributed to the rupee's decline.
Erosion in indian currency
A trade deficit, lower foreign investment, and concerns over economic growth put downward pressure on the Indian rupee in 2014-2015. A Chinese yuan devaluation and foreign investors offloading Indian assets exacerbated the rupee's decline. Lower foreign reserves and a higher demand for dollars to pay for imports further weakened the currency.
Falling of Indian Currency. Rise of Dollar.
The Indian rupee has depreciated significantly against major global currencies like the US dollar over the past few decades. It has fallen from Rs. 1 in 1947 to over Rs. 65 against the dollar in recent months due to factors like a widening current account deficit, lower foreign exchange reserves, and a slowdown in economic growth. While the RBI and government have taken some measures to curb volatility, like increasing interest rates and imposing new FX controls, the rupee continues to decline sharply.
Why the rupee is falling against the dollar
The rupee has been falling sharply against the dollar due to increased demand for dollars from importers to pay for higher crude oil prices and flight of foreign funds from India. Foreign investors have been pulling money out of emerging markets like India to reinvest in the bailed out US economy. Additionally, India's rising trade deficit and inflation have contributed to the falling value of the rupee. While a lower rupee value could boost exports, continued declines may increase costs for foreign debt and discourage foreign investment in India. The RBI has intervened in the forex market and raised interest rates on foreign currency deposits to stabilize the rupee.
Recommended
Devaluating indian currency
The document discusses the devaluation of the Indian rupee over time. It notes that the rupee was initially pegged to the US dollar at parity but has devalued significantly since India's independence. Major devaluations occurred in the 1960s-1970s due to wars and inflation, in the 1980s due to political instability, and in 1991 during economic liberalization when the rupee hit 24.58 rupees to the dollar. More recent fluctuations are due to factors like the US dollar strengthening, a rising current account deficit, and insufficient foreign investment inflows and outflows. Devaluation impacts trade, tourism, GDP, imports, exports, and foreign investment.
USD vs INR
This presentation is about the Indian Economy and the strength of USD against INR. This slideshow presents the causes and the solutions of gaining more strenght.
Impact of devaluation of Indian rupee
THE 1991 DEVALUATION, WHAT WENT WRONG, EFFECT OF DEVALUATION ON ECONOMY, EXPORTS VS FALL IN THE INDIAN RUPEE VALUE: THE VOLUME EFFECT.
Falling Rupee
The Indian rupee has depreciated significantly against the US dollar over time. It was initially a silver-based currency but became paper-based after WWI due to silver shortages. The value of the rupee declined during the 1960s due to war and drought, trading at 6 pence compared to 24 pence previously. Economic crises in the 1990s and 2013 further weakened the rupee. Its current fall is due to factors like a rising trade deficit, slowing GDP growth, and foreign investor withdrawals amid global uncertainties. For the rupee to stabilize, India must balance imports/exports and implement proper monetary and fiscal policies.
Erosion in indian currency
A deficit in India's trade balance and lower foreign investment inflows put downward pressure on the Indian rupee in 2014-2015. A Chinese devaluation of the yuan further weakened the rupee by making Chinese exports more competitive. Additionally, fears over slower Indian economic growth and declines in foreign institutional investment out of Indian markets exacerbated pressure on the currency. Offloading of Indian assets by foreign investors increased demand for U.S. dollars and contributed to the rupee's decline.
Erosion in indian currency
A trade deficit, lower foreign investment, and concerns over economic growth put downward pressure on the Indian rupee in 2014-2015. A Chinese yuan devaluation and foreign investors offloading Indian assets exacerbated the rupee's decline. Lower foreign reserves and a higher demand for dollars to pay for imports further weakened the currency.
Falling of Indian Currency. Rise of Dollar.
The Indian rupee has depreciated significantly against major global currencies like the US dollar over the past few decades. It has fallen from Rs. 1 in 1947 to over Rs. 65 against the dollar in recent months due to factors like a widening current account deficit, lower foreign exchange reserves, and a slowdown in economic growth. While the RBI and government have taken some measures to curb volatility, like increasing interest rates and imposing new FX controls, the rupee continues to decline sharply.
Why the rupee is falling against the dollar
The rupee has been falling sharply against the dollar due to increased demand for dollars from importers to pay for higher crude oil prices and flight of foreign funds from India. Foreign investors have been pulling money out of emerging markets like India to reinvest in the bailed out US economy. Additionally, India's rising trade deficit and inflation have contributed to the falling value of the rupee. While a lower rupee value could boost exports, continued declines may increase costs for foreign debt and discourage foreign investment in India. The RBI has intervened in the forex market and raised interest rates on foreign currency deposits to stabilize the rupee.
Group presentation.pptx
it about why , how indian rupees depreciating against the us dollar. the limitation and at the conclusion\
RBI has to climb highest mountain to control rupee devaluation (2)
The Reserve Bank of India faces significant challenges in controlling the devaluation of the Indian rupee. Several factors have contributed to the rupee's decline, including high imports of gold and oil which increase India's current account deficit, the strengthening US dollar, and a slowdown in the global economy. In response, the RBI has taken steps such as curbing currency forwards trading, increasing interest rates, and using forex reserves, but these measures have proven inadequate. Long term solutions are needed such as attracting more foreign investment, controlling gold imports, and developing alternative energy sources to reduce reliance on oil imports. Close coordination is required between the RBI and government to comprehensively address the issues fueling the rupee's slide.
Depreciation of Rupee in the past 2 Months
The Indian rupee has depreciated 15% against the US dollar over the past two months, hitting an all-time low of 64.11 rupees to the dollar in early August. This depreciation has negatively impacted asset classes in India like stocks, bonds, and real estate. While the falling rupee benefits exporters and IT companies, it hurts importers and increases inflation. The decline is largely due to increased fiscal deficit, higher crude prices, and the US Federal Reserve's plans to taper quantitative easing measures, which led to foreign institutional investors withdrawing funds from India. The RBI has taken steps to curb volatility by increasing restrictions on gold imports and absorbing rupee liquidity from banks.
Rupee depreciation
The document discusses India's exchange rate policies and crises since independence in 1947. It summarizes that India faced major financial crises and rupee devaluations in 1966 and 1991. In 1966, a war with Pakistan, drought, and reduced foreign aid necessitated devaluation despite trade restrictions. In 1991, high inflation, inconsistent trade deficits, and inadequate export incentives caused a crisis that led to economic liberalization. Foreign exchange reserves grew steadily from 2006-2012 except for a decline in 2008-2009 during the global financial crisis.
Prepared by
The document discusses the devaluation of the Indian rupee. It provides historical context on the rupee and previous devaluations in 1966 and 1991. It then examines reasons for recent devaluations of the rupee including a mounting current account deficit, high inflation, a trade deficit, and outflows of foreign capital. The impacts of devaluation are also explored such as increased exports and imports as well as higher costs of living and borrowing. Potential solutions discussed include promoting exports, restraining imports, and encouraging foreign investment.
Currency wars
Currency strength is determined by fiscal deficits, trade balances, foreign reserves, and capital flows. Countries with trade surpluses and capital inflows tend to have strengthening currencies, while those with deficits and outflows see weakening currencies. China gained a competitive advantage by keeping its currency artificially weak for years. Now, the US-China trade war is prompting countries to weaken currencies to boost exports. China already depreciated its currency this year, and other exporting nations may follow to maintain competitiveness if trade wars continue, potentially sparking a currency war. India also saw rupee depreciation due to factors like rising oil prices and capital outflows from expected US interest rate hikes. Policymakers face challenges in managing currencies
Currency Wars
Trade wars today will lead to currency wars . The move will be to preserve the trade competitiveness.
Analysis of reasons behind the recent rise of dollar against rupee
The document analyzes the reasons for the recent rise of the US dollar against the Indian rupee. It discusses that the rupee hit an all-time low against the dollar due to a large trade deficit, reduced capital inflows, high inflation, and the US Federal Reserve's decision to taper quantitative easing. This led to increased demand for dollars and outflows of foreign investment from India. However, measures by the Reserve Bank of India like introducing subsidized foreign currency deposits and allowing bank foreign borrowing have helped stabilize the rupee temporarily, but experts believe the recovery may not last due to upcoming US tapering and Indian elections.
Rupeee vs dollar
The document compares the Indian rupee and U.S. dollar, discusses reasons for the rupee's depreciation against the dollar such as widening current account deficit and withdrawal of foreign investors, and effects of rupee depreciation like increased import costs and inflation. It also outlines steps that can be taken for rupee appreciation, including increasing exports, reducing imports, promoting tourism, and raising awareness among people to use domestic products and public transport.
Rupee vs dollar
The document discusses the key factors that influence exchange rates between the Indian rupee and US dollar over time. It outlines the historical devaluations of the rupee from 1947 onwards due to wars, inflation, and economic liberalization that required foreign currency reserves. Exchange rates are determined by market forces since 1993 and are influenced by interest rates, trade balances, money supply, inflation, economic growth, foreign debt levels, and short-term factors like central bank interventions and capital flows. Understanding these influences is crucial for assessing financial and economic developments.
exchange rate volatility
This document discusses exchange rate volatility and its impact on India and China. It notes that exchange rate volatility can decrease international trade by creating uncertainty. For developing countries like India that rely on exports, volatility increases trade costs. The Indian rupee and Chinese yuan both show volatility in their exchange rates. India follows a managed floating exchange rate regime to reduce volatility and stabilize its real effective exchange rate. Devaluations of the yuan have impacted Indian and Chinese trade, giving a boost to Chinese exports but also creating opportunities for other trading partners of China like India.
Weakening rupee
The document discusses the causes and effects of the weakening Indian rupee. It traces the historical exchange rate between the rupee and US dollar from 1947 to present. Key causes of the rupee's weakening include India's dependence on crude oil imports, gold imports, fiscal and current account deficits, the European debt crisis, and weak economic fundamentals. Effects include higher gold and fuel prices, increased education costs for students abroad, benefits for exporters, and increased borrowing costs. A weak rupee impacts many sectors of the Indian economy.
Devaluation
Devaluation is a downward adjustment to a country's currency value relative to other currencies. It is used by countries with fixed exchange rates as a monetary policy tool. India has devalued the rupee multiple times, such as in 1966 and 1991, to combat trade imbalances and boost exports. Devaluation makes exports cheaper and imports more expensive. This improves the current account balance but also increases prices for imports, hurting consumers and raising inflation. The effects depend on elasticity of demand and supply for exports and imports.
Fall of indian rupee
The Indian rupee has significantly depreciated against the US dollar over time. It was pegged to the British pound until 1966 and then pegged to the US dollar until 1975. Since then, the rupee has steadily fallen due to factors such as a huge trade deficit, lower capital inflows, a high current account deficit, devaluation pressure, low growth and high inflation, rupee speculation, and uncertainty about economic reforms in India. The falling rupee has negatively impacted the Indian economy.
BUS 550 -_finance_final_project_group_1_rev_5
California University of Management and Technology (CALMAT) MBA
BUS550 Finance
Final Project - Analyze the exchange rate risk of India Rupee and the risk vis-à-vis the U.S.
Currency devaluation
The document discusses currency devaluation in Pakistan over several decades. It provides background on currency devaluation, including definitions, examples of Pakistan's currency (rupee) being devalued historically with reasons, effects of devaluation on exports/imports and trade balances, and factors influencing Pakistan's recent devaluations. Both positive and negative economic impacts of devaluation are examined, as well as strategies to prevent further devaluation. The aviation industry is discussed as one directly impacted by changes in currency value.
Rupee depreciation-The Need of the Hour
The rupee has been depreciating against the US dollar due to India's high current account deficit and trade deficit. A current account deficit occurs when the value of goods and services imported exceeds exports, requiring payment in foreign currency. India has a large trade deficit due to high imports, especially of oil, which it pays for in dollars. This increases the demand for dollars and causes the rupee to depreciate. Additionally, a high fiscal deficit due to government subsidies on fuel further exacerbates the problem. The falling rupee increases inflation and the costs of imports, fuel, education, and other items for consumers and businesses in India.
Rupee Depreciation - 2013
The document discusses the depreciation of the Indian rupee. It lists several causes of rupee depreciation, including increased demand for dollars in India, the strengthening of other currencies like the dollar against the rupee, and higher oil prices increasing demand for dollars. Effects of rupee depreciation include advantages for exporters but higher costs for importers. The government can take measures to control depreciation such as increasing FDI limits, creating political/economic stability, and developing import substitution industries. Depreciation occurs via market forces, while devaluation is a purposeful government decision to lower a currency's value.
Effect of dollar fluctuation on Indian trade.
How the change in dollar value in comparison to Indian rupee affects the Indian trade (export & import).
Devaluation of rupee
The rupee was historically linked to the British pound and U.S. dollar within the IMF system of fixed exchange rates. India devalued the rupee for the first time in 1949 by 30.5%, and again in 1966 by 36.5%, to reduce its value against foreign currencies. Major devaluations also occurred in 1991 due to balance of payments issues, liberal import policies, and the Gulf War, causing the rupee to lose value against the dollar on open markets. Devaluation aims to make exports cheaper and imports more expensive, boosting exports and the tourism industry but also increasing domestic inflation through higher import prices. However, devaluation does not always effectively boost exports depending on demand elasticity and ability to substitute imports
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【主营项目】
一.毕业证【q微741003700】成绩单、使馆认证、教育部认证、雅思托福成绩单、学生卡等！
二.真实使馆公证(即留学回国人员证明,不成功不收费)
三.真实教育部学历学位认证（教育部存档！教育部留服网站永久可查）
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◇面对父母的压力，希望尽快拿到；
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◇申请留学生创业基金
留信网认证的作用:
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2:同时对留学生所学专业登记给予评定
3:国家专业人才认证中心颁发入库证书
4:这个认证书并且可以归档倒地方
5:凡事获得留信网入网的信息将会逐步更新到个人身份内，将在公安局网内查询个人身份证信息后，同步读取人才网入库信息
6:个人职称评审加20分
7:个人信誉贷款加10分
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本公司拥有海外各大学样板无数，能完美还原。
1:1完美还原海外各大学毕业材料上的工艺：水印，阴影底纹，钢印LOGO烫金烫银，LOGO烫金烫银复合重叠。文字图案浮雕、激光镭射、紫外荧光、温感、复印防伪等防伪工艺。材料咨询办理、认证咨询办理请加学历顾问Q/微741003700
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二.真实使馆公证(即留学回国人员证明,不成功不收费)
三.真实教育部学历学位认证（教育部存档！教育部留服网站永久可查）
四.办理各国各大学文凭(一对一专业服务,可全程监控跟踪进度)
如果您处于以下几种情况：
◇在校期间，因各种原因未能顺利毕业……拿不到官方毕业证【q/微741003700】
◇面对父母的压力，希望尽快拿到；
◇不清楚认证流程以及材料该如何准备；
◇回国时间很长，忘记办理；
◇回国马上就要找工作，办给用人单位看；
◇企事业单位必须要求办理的
◇需要报考公务员、购买免税车、落转户口
◇申请留学生创业基金
留信网认证的作用:
1:该专业认证可证明留学生真实身份
2:同时对留学生所学专业登记给予评定
3:国家专业人才认证中心颁发入库证书
4:这个认证书并且可以归档倒地方
5:凡事获得留信网入网的信息将会逐步更新到个人身份内，将在公安局网内查询个人身份证信息后，同步读取人才网入库信息
6:个人职称评审加20分
7:个人信誉贷款加10分
8:在国家人才网主办的国家网络招聘大会中纳入资料，供国家高端企业选择人才
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Group presentation.pptx
it about why , how indian rupees depreciating against the us dollar. the limitation and at the conclusion\
RBI has to climb highest mountain to control rupee devaluation (2)
The Reserve Bank of India faces significant challenges in controlling the devaluation of the Indian rupee. Several factors have contributed to the rupee's decline, including high imports of gold and oil which increase India's current account deficit, the strengthening US dollar, and a slowdown in the global economy. In response, the RBI has taken steps such as curbing currency forwards trading, increasing interest rates, and using forex reserves, but these measures have proven inadequate. Long term solutions are needed such as attracting more foreign investment, controlling gold imports, and developing alternative energy sources to reduce reliance on oil imports. Close coordination is required between the RBI and government to comprehensively address the issues fueling the rupee's slide.
Depreciation of Rupee in the past 2 Months
The Indian rupee has depreciated 15% against the US dollar over the past two months, hitting an all-time low of 64.11 rupees to the dollar in early August. This depreciation has negatively impacted asset classes in India like stocks, bonds, and real estate. While the falling rupee benefits exporters and IT companies, it hurts importers and increases inflation. The decline is largely due to increased fiscal deficit, higher crude prices, and the US Federal Reserve's plans to taper quantitative easing measures, which led to foreign institutional investors withdrawing funds from India. The RBI has taken steps to curb volatility by increasing restrictions on gold imports and absorbing rupee liquidity from banks.
Rupee depreciation
The document discusses India's exchange rate policies and crises since independence in 1947. It summarizes that India faced major financial crises and rupee devaluations in 1966 and 1991. In 1966, a war with Pakistan, drought, and reduced foreign aid necessitated devaluation despite trade restrictions. In 1991, high inflation, inconsistent trade deficits, and inadequate export incentives caused a crisis that led to economic liberalization. Foreign exchange reserves grew steadily from 2006-2012 except for a decline in 2008-2009 during the global financial crisis.
Prepared by
The document discusses the devaluation of the Indian rupee. It provides historical context on the rupee and previous devaluations in 1966 and 1991. It then examines reasons for recent devaluations of the rupee including a mounting current account deficit, high inflation, a trade deficit, and outflows of foreign capital. The impacts of devaluation are also explored such as increased exports and imports as well as higher costs of living and borrowing. Potential solutions discussed include promoting exports, restraining imports, and encouraging foreign investment.
Currency wars
Currency strength is determined by fiscal deficits, trade balances, foreign reserves, and capital flows. Countries with trade surpluses and capital inflows tend to have strengthening currencies, while those with deficits and outflows see weakening currencies. China gained a competitive advantage by keeping its currency artificially weak for years. Now, the US-China trade war is prompting countries to weaken currencies to boost exports. China already depreciated its currency this year, and other exporting nations may follow to maintain competitiveness if trade wars continue, potentially sparking a currency war. India also saw rupee depreciation due to factors like rising oil prices and capital outflows from expected US interest rate hikes. Policymakers face challenges in managing currencies
Currency Wars
Trade wars today will lead to currency wars . The move will be to preserve the trade competitiveness.
Analysis of reasons behind the recent rise of dollar against rupee
The document analyzes the reasons for the recent rise of the US dollar against the Indian rupee. It discusses that the rupee hit an all-time low against the dollar due to a large trade deficit, reduced capital inflows, high inflation, and the US Federal Reserve's decision to taper quantitative easing. This led to increased demand for dollars and outflows of foreign investment from India. However, measures by the Reserve Bank of India like introducing subsidized foreign currency deposits and allowing bank foreign borrowing have helped stabilize the rupee temporarily, but experts believe the recovery may not last due to upcoming US tapering and Indian elections.
Rupeee vs dollar
The document compares the Indian rupee and U.S. dollar, discusses reasons for the rupee's depreciation against the dollar such as widening current account deficit and withdrawal of foreign investors, and effects of rupee depreciation like increased import costs and inflation. It also outlines steps that can be taken for rupee appreciation, including increasing exports, reducing imports, promoting tourism, and raising awareness among people to use domestic products and public transport.
Rupee vs dollar
The document discusses the key factors that influence exchange rates between the Indian rupee and US dollar over time. It outlines the historical devaluations of the rupee from 1947 onwards due to wars, inflation, and economic liberalization that required foreign currency reserves. Exchange rates are determined by market forces since 1993 and are influenced by interest rates, trade balances, money supply, inflation, economic growth, foreign debt levels, and short-term factors like central bank interventions and capital flows. Understanding these influences is crucial for assessing financial and economic developments.
exchange rate volatility
This document discusses exchange rate volatility and its impact on India and China. It notes that exchange rate volatility can decrease international trade by creating uncertainty. For developing countries like India that rely on exports, volatility increases trade costs. The Indian rupee and Chinese yuan both show volatility in their exchange rates. India follows a managed floating exchange rate regime to reduce volatility and stabilize its real effective exchange rate. Devaluations of the yuan have impacted Indian and Chinese trade, giving a boost to Chinese exports but also creating opportunities for other trading partners of China like India.
Weakening rupee
The document discusses the causes and effects of the weakening Indian rupee. It traces the historical exchange rate between the rupee and US dollar from 1947 to present. Key causes of the rupee's weakening include India's dependence on crude oil imports, gold imports, fiscal and current account deficits, the European debt crisis, and weak economic fundamentals. Effects include higher gold and fuel prices, increased education costs for students abroad, benefits for exporters, and increased borrowing costs. A weak rupee impacts many sectors of the Indian economy.
Devaluation
Devaluation is a downward adjustment to a country's currency value relative to other currencies. It is used by countries with fixed exchange rates as a monetary policy tool. India has devalued the rupee multiple times, such as in 1966 and 1991, to combat trade imbalances and boost exports. Devaluation makes exports cheaper and imports more expensive. This improves the current account balance but also increases prices for imports, hurting consumers and raising inflation. The effects depend on elasticity of demand and supply for exports and imports.
Fall of indian rupee
The Indian rupee has significantly depreciated against the US dollar over time. It was pegged to the British pound until 1966 and then pegged to the US dollar until 1975. Since then, the rupee has steadily fallen due to factors such as a huge trade deficit, lower capital inflows, a high current account deficit, devaluation pressure, low growth and high inflation, rupee speculation, and uncertainty about economic reforms in India. The falling rupee has negatively impacted the Indian economy.
BUS 550 -_finance_final_project_group_1_rev_5
California University of Management and Technology (CALMAT) MBA
BUS550 Finance
Final Project - Analyze the exchange rate risk of India Rupee and the risk vis-à-vis the U.S.
Currency devaluation
The document discusses currency devaluation in Pakistan over several decades. It provides background on currency devaluation, including definitions, examples of Pakistan's currency (rupee) being devalued historically with reasons, effects of devaluation on exports/imports and trade balances, and factors influencing Pakistan's recent devaluations. Both positive and negative economic impacts of devaluation are examined, as well as strategies to prevent further devaluation. The aviation industry is discussed as one directly impacted by changes in currency value.
Rupee depreciation-The Need of the Hour
The rupee has been depreciating against the US dollar due to India's high current account deficit and trade deficit. A current account deficit occurs when the value of goods and services imported exceeds exports, requiring payment in foreign currency. India has a large trade deficit due to high imports, especially of oil, which it pays for in dollars. This increases the demand for dollars and causes the rupee to depreciate. Additionally, a high fiscal deficit due to government subsidies on fuel further exacerbates the problem. The falling rupee increases inflation and the costs of imports, fuel, education, and other items for consumers and businesses in India.
Rupee Depreciation - 2013
The document discusses the depreciation of the Indian rupee. It lists several causes of rupee depreciation, including increased demand for dollars in India, the strengthening of other currencies like the dollar against the rupee, and higher oil prices increasing demand for dollars. Effects of rupee depreciation include advantages for exporters but higher costs for importers. The government can take measures to control depreciation such as increasing FDI limits, creating political/economic stability, and developing import substitution industries. Depreciation occurs via market forces, while devaluation is a purposeful government decision to lower a currency's value.
Effect of dollar fluctuation on Indian trade.
How the change in dollar value in comparison to Indian rupee affects the Indian trade (export & import).
Devaluation of rupee
The rupee was historically linked to the British pound and U.S. dollar within the IMF system of fixed exchange rates. India devalued the rupee for the first time in 1949 by 30.5%, and again in 1966 by 36.5%, to reduce its value against foreign currencies. Major devaluations also occurred in 1991 due to balance of payments issues, liberal import policies, and the Gulf War, causing the rupee to lose value against the dollar on open markets. Devaluation aims to make exports cheaper and imports more expensive, boosting exports and the tourism industry but also increasing domestic inflation through higher import prices. However, devaluation does not always effectively boost exports depending on demand elasticity and ability to substitute imports
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RBI has to climb highest mountain to control rupee devaluation (2)
RBI has to climb highest mountain to control rupee devaluation (2)
Analysis of reasons behind the recent rise of dollar against rupee
Analysis of reasons behind the recent rise of dollar against rupee
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◇在校期间，因各种原因未能顺利毕业……拿不到官方毕业证【q/微741003700】
◇面对父母的压力，希望尽快拿到；
◇不清楚认证流程以及材料该如何准备；
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2:同时对留学生所学专业登记给予评定
3:国家专业人才认证中心颁发入库证书
4:这个认证书并且可以归档倒地方
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South Dakota State University degree offer diploma Transcript
办理美国SDSU毕业证书制作南达科他州立大学假文凭定制Q微168899991做SDSU留信网教留服认证海牙认证改SDSU成绩单GPA做SDSU假学位证假文凭高仿毕业证GRE代考如何申请南达科他州立大学South Dakota State University degree offer diploma Transcript
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本公司拥有海外各大学样板无数，能完美还原。
1:1完美还原海外各大学毕业材料上的工艺：水印，阴影底纹，钢印LOGO烫金烫银，LOGO烫金烫银复合重叠。文字图案浮雕、激光镭射、紫外荧光、温感、复印防伪等防伪工艺。材料咨询办理、认证咨询办理请加学历顾问Q/微741003700
【主营项目】
一.毕业证【q微741003700】成绩单、使馆认证、教育部认证、雅思托福成绩单、学生卡等！
二.真实使馆公证(即留学回国人员证明,不成功不收费)
三.真实教育部学历学位认证（教育部存档！教育部留服网站永久可查）
四.办理各国各大学文凭(一对一专业服务,可全程监控跟踪进度)
如果您处于以下几种情况：
◇在校期间，因各种原因未能顺利毕业……拿不到官方毕业证【q/微741003700】
◇面对父母的压力，希望尽快拿到；
◇不清楚认证流程以及材料该如何准备；
◇回国时间很长，忘记办理；
◇回国马上就要找工作，办给用人单位看；
◇企事业单位必须要求办理的
◇需要报考公务员、购买免税车、落转户口
◇申请留学生创业基金
留信网认证的作用:
1:该专业认证可证明留学生真实身份
2:同时对留学生所学专业登记给予评定
3:国家专业人才认证中心颁发入库证书
4:这个认证书并且可以归档倒地方
5:凡事获得留信网入网的信息将会逐步更新到个人身份内，将在公安局网内查询个人身份证信息后，同步读取人才网入库信息
6:个人职称评审加20分
7:个人信誉贷款加10分
8:在国家人才网主办的国家网络招聘大会中纳入资料，供国家高端企业选择人才
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May’s reports showed signs of continued economic growth, said Sam Millette, director, fixed income, in his latest Economic Risk Factor Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
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- 1. Depreciation of Rupee By- Srushti Rathod. Prasad Manjrekar. Rohit Keluskar.
- 2. What is in for me? Valuation of currency Factors that causes appreciation and depreciation of currency How rupee dollar rates are determined Causes for depreciation of rupee over the years Recent decrease in the valuation of rupee Reason for recent decrease Advantages and dis advantages of depreciation of rupee Measures the government can take to control the depreciation of rupee Measures RBI has taken to control the fall of rupee
- 3. Factors that causes appreciation and depreciation of currency Relative Product Prices Monetary Policy Inflation Rate Differences Income Changes
- 4. Valuation of currency In 1947, Indian rupee was at par with US dollar as there were no Foreign borrowings. In 1951, Govt introduced 5 year plan. To finance this, govt started external borrowing which required devaluation of currency. India had chose Fixed rate currency regime. Rupee was pegged at 4.79 against dollar between 1948 to 1966. Two consecutive wars with china and Pakistan 1962 & 1965 respectively, resulted as huge deficit on India's budget forcing govt to devalue currency 7.57 against per dollar. In 1971, rupee and British pound link was broken and was linked directly to US dollar In 1975, Rupee was devalued to 8.39 and in 1985 it was further devalued to 12 against the dollar. In 1991, India faced serious BOP crisis and forced to devalue sharply and forced to 17.90 against dollar. In 1993, currency let free flow in market with market sentiment. This year currency devalued to 31.37 against dollar.
- 5. In 1947, 1$=1rs. 1951, 5 year plan Fixed rate regime pegged 4.79/$ upto 1966 Devalued to 7.57/$ because of war In 1971, british pound link was broken and linked with USD In 1975 & 1985 rupee devalued to 8.39 & 12 respectively Serious BOP crisis, devaled to 17.90/$ In 1993, currency let free flow with market sentiments In 2018, depreciated to 74.50/$
- 6. USD/INR Chart (2009-2018) Source- www.xe.com
- 7. How rupee-dollar rates are determined? The value of a currency against another is based on demand. Greater demand makes a currency stronger and vice versa. International Parity Conditions Balance of Payments Economic Policies of a government (Fiscal Policy, Budget, Investment policy and Foreign Trade Policies) and a country’s central Bank (Cost of money, interest rates, monetary policy) General macroeconomic conditions of the country inflation levels and trends Balance of Trade Market Psychology & perception
- 8. Recent decrease in the valuation of rupee
- 9. Causes for depreciation of rupee over the years
- 10. Reason for recent decrease
- 11. Disadvantages of depreciation of rupee Depreciation strengthens inflationary forces. When the inflation rises, prices of goods and commodities shoots up. The purchasing power of the rupee falls down. A depreciation of the domestic currency results in higher import costs for the country. Failure of a similar rise being experienced in the prices of exportable commodities is going to result in a widening of current account deficit (CAD) of the country. Foreign Travel and Overseas Education becomes costlier. The interest burden would increase on foreign currency denominated debt. A large and rapid devaluation may scare off international investors. It makes investors less willing to hold government debt because it is effectively reducing the value of their holdings.
- 12. Advantages of depreciation of rupee Exports become cheaper, more competitive to foreign buyers. Therefore, this provides a boost for domestic demand. Travel to India gets cheaper; local industry may benefit. Those working abroad can gain more on remitting money to their homeland. Ultimately, it assists in reducing the current account deficit.
- 13. Measures the government can take to control the depreciation of rupee
- 14. Measures RBI has taken to control the fall of rupee