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WHY FALL IN RUPEE

RUPEE DEPRECIATION

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WHY FALL IN RUPEE

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  1. SMT.CHANDIBAI HIMATHMAL MANSUKHANI COLLEGE • Presented by: • HARSHA MATTA • SYBFM • CHM COLLEGE • ULHASNAGAR

  2. Why fall in rupee?

  3. Introduction profit for Exporters→ Sell Choclates $1=45 $1=50 40 45 50 lossfor Importers→ Buy choclates$1=45 $1=50

  4. Deprecation Of Rupee • More and more rupees are brought in our country and dollars are sold • More and more rupees are sold and dollars are brought

  5. 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

  6. FY12 Estimates Imports>Exports $470bn>$320bn -$150bn Trade Deficit +$90bn Service Revenue -$60bn Net Deficit

  7. Productive And Unproductive Assets

  8. 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

  9. 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 give back loan→pressure on rupee

  10. Chinese currency • China not affected? • Whole country is facing problems why not china? • This is because Yuan is always remains stable neither depreciates nor appreciates.

  11. Solution? • To balance demand & supply • Proper implementation of monetary policy and fiscal policy in our country • Stability in imports & exports,etc.

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