What went wrong with Rupee?

rupees journey…

post independence——fixed nominal exchange rate

1950 & 60’s— increases inflation lead to apreciation of REER—- remebr Nehru era had trade restiction policy—-& despite foreigh aid— BOP problems increased..

1966— Pressure from US & Bretton woods( world bank , IMF )——- India took large nominal devaluation—of 36.5%
this was widely criticized as political disaster for india..

1971— BREAKdown of bretton woods—-rupee was pegged to pound sterling—-until 1975 which led to automatic depreciation since pound depreciated…hence rupee depreciated by another 20 %

1975— rupee pegged to basket of currencies..

1980— exchange rate policy allowed rupee to devalue by 47%..

1991 BOP crisis— Under pressure from IMF as condition for access to loans—rupee devalued by 10% in 2 stages..

1993— INDIA adopted floating exchange rate…

2000— full convertability of current account…

Current stance—- dirty float..AKA…managed float…RBI intervenes only to reduce volatility…

I think an appropriate title would be

“What went wrong with Rupee?”

Jagsss wrote:

I think an appropriate title would be

“What went wrong with Rupee?”

Edited

1 Purchase of crude oil needs $
2 Purchase of gold needs $
3 Purchase of weapons needs $
4 purchase of chinese goods needs $
5 And a controversial thing no one will tell pilgrimages to Mecca(lakhs of indians visit each year),jeuselam etc also need $

amal.onlineshop1 wrote:

1 Purchase of crude oil needs $
2 Purchase of gold needs $
3 Purchase of weapons needs $
4 purchase of chinese goods needs $
5 And a controversial thing no one will tell pilgrimages to Mecca(lakhs of indians visit each year),jeuselam etc also need $

Good for Hindus ,Sikhs and Jains

soccergiants wrote:

Good for Hindus ,Sikhs and Jains

Is It So…? ? ?

Any Specific Reasons For That…? ? Or Is It Some Sort Of Sarcasm….? ?:roll:

amal.onlineshop1 wrote:

1 Purchase of crude oil needs $
2 Purchase of gold needs $
3 Purchase of weapons needs $
4 purchase of chinese goods needs $
5 And a controversial thing no one will tell pilgrimages to Mecca(lakhs of indians visit each year),jeuselam etc also need $

In contrast to this…

Lakhs of indians staying abroad buy INR… I had visited a money exchange in UAE and the guy there told me; they normally sell INR worth 1 million AED per day… and on some holidays, the amount can even reach upto 10 million AED…

Jagsss wrote:

amal.onlineshop1 wrote:

1 Purchase of crude oil needs $
2 Purchase of gold needs $
3 Purchase of weapons needs $
4 purchase of chinese goods needs $
5 And a controversial thing no one will tell pilgrimages to Mecca(lakhs of indians visit each year),jeuselam etc also need $

In contrast to this…

Lakhs of indians staying abroad buy INR… I had visited a money exchange in UAE and the guy there told me; they normally sell INR worth 1 million AED per day… and on some holidays, the amount can even reach upto 10 million AED…

..The think in that oil ,goods weapons etc we cannot avoid but only things we can control is gold purchase+pilgrimage things .

what about the black money that is going out of this country

• 100000 crore – 2g

• 1000000 crore – coalgate

etc

Ho raha bharat nirman ho raha bharat nirman

amazing

1 Re = 13 USD,, Angrezo ke time unki tuti bolti thi !

India was quite rich as compared to other countries before britishers & Mughals invaded it… Even in 1940 the INR VS USD was quite high…