Downfall of the Indian Rupee
Indian Rupee is the national currency of Republic of India and its the Reserve bank of India which controls the value of Indian Rupee.
Recent news which made all the Indian proud about the Indian rupee was inauguration of the Indian rupee symbol which is derive from the Devanagari symbol R (In Hindi).
In 2007 Indian rupee was very strong as the nation's GDP was close to 9% and the rupee was almost valued as to Rs.
38 against to 1 dollar.
But all of this changed.
By 2009 Indian rupee came to a figure of 50 against to a dollar and by 2013 we saw Indian rupee touching the lowest point of Rs 60 against 1 Dollar.
The only question which comes to our mind is "Why".
Why is rupee becoming week? Globalization Today we live in a world where the stock market of 1 nation impacts the stock market of hundreds of other nations.
It's not only India which has witness weakness in their currency.
Many other developing nations like Brazil, South Africa has also seen a weakness in their currency.
So the currency of India took a hit because: Rising crude oil prices, dollar which is becoming stronger, decreasing price of gold, more investment in gold by the Indians, decline in the reserve of dollar in Indian banks, disturbance in the Arab nations, Iran & Iraq.
But the most important of all is the high investment in gold which has declined the dollar reserve of India.
Due to this India has to buy excess dollar which in return is wakening the Indian currency.
Our finance minister is requesting the Indian citizens to not invest in gold but because of a high current account deficit people see gold as the safest investment option.
So how the Indian government can improve the value of Rupee? As per many experts the best way is to think out of the box.
Measures like balance the import export ratio, extending the exporting option in the nations of Africa, East & Southern eastern Asia and most important building confidence in the hearts of Indian to invest in government bonds, and not in gold are the measures which will improve the rupee.
Well as many financial experts have said that money saved today will have good results in the long future, not in near future.
Indian government measures to decline their fiscal deficit by 2015-16 are a good step towards recovery.
But the Indian government needs to take the people in the confidence as without this nothing is imaginable.
Recent news which made all the Indian proud about the Indian rupee was inauguration of the Indian rupee symbol which is derive from the Devanagari symbol R (In Hindi).
In 2007 Indian rupee was very strong as the nation's GDP was close to 9% and the rupee was almost valued as to Rs.
38 against to 1 dollar.
But all of this changed.
By 2009 Indian rupee came to a figure of 50 against to a dollar and by 2013 we saw Indian rupee touching the lowest point of Rs 60 against 1 Dollar.
The only question which comes to our mind is "Why".
Why is rupee becoming week? Globalization Today we live in a world where the stock market of 1 nation impacts the stock market of hundreds of other nations.
It's not only India which has witness weakness in their currency.
Many other developing nations like Brazil, South Africa has also seen a weakness in their currency.
So the currency of India took a hit because: Rising crude oil prices, dollar which is becoming stronger, decreasing price of gold, more investment in gold by the Indians, decline in the reserve of dollar in Indian banks, disturbance in the Arab nations, Iran & Iraq.
But the most important of all is the high investment in gold which has declined the dollar reserve of India.
Due to this India has to buy excess dollar which in return is wakening the Indian currency.
Our finance minister is requesting the Indian citizens to not invest in gold but because of a high current account deficit people see gold as the safest investment option.
So how the Indian government can improve the value of Rupee? As per many experts the best way is to think out of the box.
Measures like balance the import export ratio, extending the exporting option in the nations of Africa, East & Southern eastern Asia and most important building confidence in the hearts of Indian to invest in government bonds, and not in gold are the measures which will improve the rupee.
Well as many financial experts have said that money saved today will have good results in the long future, not in near future.
Indian government measures to decline their fiscal deficit by 2015-16 are a good step towards recovery.
But the Indian government needs to take the people in the confidence as without this nothing is imaginable.