The Indian rupee value against the US dollar has been falling for the past one month and uncertainty has arisen in the economy. Currency experts also claim that the Indian rupee will be worth 70 rupees in the 6 to 8 months.
Can the Reserve Bank repay the rupee depreciation?
The value of a country's economy can be determined by the value of the rupee. Only foreign investments are accumulated. If the rupee increases, the Indian economy will rise or the foreign investment will be higher. As of 2014, the rupee has been stable and has been unstable for the last few months, like other Asian currencies.
When the Rupee of India is falling, everything is interrupted by the RBI, so it is expected that the rupee depreciation will not increase. The rupee depreciation increases the exports. The RBI will not use the way to repay the rupee but will not use it. So, the economics and policy changes in India are the only way to save the rupee, "said Shaukata Bhattacharya, chief economist at Axis Bank.
Do not stop the rupee depreciation ..
What will be the value of the rupee and many people are questioning if it is going to be in the course of its impact if India can face the greatest economic problem. At the same time, India's imports will be affected. The commercial war environment is currently cooling. 5 years ago, India's economy is now larger and more sustainable. The chief economist, De Kai Joshi, said that exports to parallel to import would be the right way to escape rupee depreciation.
Rupee depreciation increases inflation
Basic tasks for reducing the rupee depreciation. Failure to change fluctuations. Rupee value should slip. Where there is a steady decline, there is no fear. At the same time, inflation swells will increase. The biggest problem is the constant rupee value and high cash flow. Therefore, this collapse encourages exports. It is not right to stop the rupee's decline, "said Abhijith Sen, a former member of the Planning Commission.