PRESENTATION ON INDIAN

CURRENCY

Presentation by: D. KHAJA MAINUDIN.

CONTENTS:

REASONS FOR FALLING VALUE OF INDIAN

IMPACT OF FALLING INDIAN RUPEES.

HOW CAN INDIA CONTROL THE VALUE OF THE

IN THE INTERNATIONAL MARKET?

REASONS FOR FALLING VALUE OF.

High import and less import.

More depend on the Foreign investment

Inflation .

Less productivity.

Political conditions

IMPACT OF FALLING INDIAN

Higher interest rates.

Indian government's burden of repaying and

servicing foreign debt.

Another problem is that it might discourage foreign

institutional investors.

Costlier of imported products (Inflation)

Slower growth rate.

Costlier of overseas education.

HOW CAN INDIA CONTROL THE VALUE OF THE

RUPEE IN THE

INTERNATIONAL MARKET?

Normally, the RBI uses its Monetary Policy to

defend the rupee's value. Short-term interest rates

changes do impact the value of the rupee against

other currencies. But, the RBI has mostly used the

policy to stabilize internal conditions, like steps to

control rising inflation.

Encourage the domestic investor.

Increasing the gross domestic production.

Increasing the exports.