Monday, June 2, 2014


                                                    INDIAN RUPEE WEAK AGAINST DOLLAR.

                         The Minister of Finance, the economists,RBI Governor and others 
                          give various reasons why the rupee is weak against the US Dollar. 
                          But the common man still wonders why our rupee is weak against 
                          US dollar since independence and even after 66 years.There are 
                          small countries like Phillipines ,Israel,Singapore,Malaysia,Thailand
                          New Zealand,Egypt,Norway,and even Mauritius whose currencies  
                           fetch better value against US dollar.Afterall, it is India's pride that 
                           our currency fetch good value against other International 
                           currencies like USD,GBP,Euro etc.Of course,our currency,the rupee  
                           is not fully convertible and hence we donot know the real value of                                                      our rupee against other currencies.         

                          As a common man one wonders, inspite of having about  320 billion
                          US dollar reserves,why the rupee should be kept weak.Is it to protect 
                          the Exporters or and to incentivise Indians who have kept money 
                          abroad?.Or is it the high inflation in our country  a major reason 
                          for this weak rupee?.

                          How we compare against  China in various parameters.
                                               Currency value      Inflation    Public Debt   Reserves
                                               vis-a-vis 1USD         rate(%)      (%) of GDP    in USD.

                         1. China           6.2486 Yuan            3.1                   31.7         3.341 

                         2. India             59.00 Rupees          6.70                 49.6          320.00 

                          Data Source: Collected from various  sources.               


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