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INDIAN RUPEE HAD A
GREAT FALL…
CA Girish Jain, Past Chairman, ICAI Doha Chapter
At present, the value of Indian partners and competitors commenting on the
Rupee is continuously falling also depreciated so it sequence and timing of these
and its value has declined would not be wise to hold measures. I fully agree with
by more than 12% between on to a pre-conceived notion him that there is no normal in
January - September 2018. that something worst has exchange rates, its all market
Among the BRICS nations, happened. He also informed driven.
after the Russian Ruble, that a large amount of forex
the Rupee depreciated reserve backstop of around History of Rupee vs Dollar
the most in this period. $400 billion is still intact and
Current exchange rate Government of India is open It is very interesting to note
between Dollar and Rupee 2,000% fall of Indian
is hovering around Rupee against dollar
Rs.73.62 = 1 dollar since Independence. At
(www.XE.com dated 14 the time of independence;
Oct 2018) making it one India adopted the Par Value
of the worst performers System of International
in Asia. Monetary Fund (IMF)
and on August 15, 1947,
The other day, I was exchange rate between
watching the interview Rupee and US dollar was
of Sanjeev Sanyal, to 1 USD = 1 INR. That was
Principal Economic all mainly because India had
Advisor, Ministry of no outside borrowings on its
Finance, Govt of India options balance sheet and since India
on ET Now (those i.e. NRI was under British rule, Rupee
who don’t know him, bonds or was pegged to Pounds.
he was named Young changes to repo When the Government
Global Leader for 2010 by rates, at the started financing welfare
the World Economic Forum same time and development activities
in Davos). He seemed he avoided (with the introduction
very positive on re-bound of Five-Year Plan in
of Rupee, if not now, in the 1951), it started external
longer run. He claimed that borrowings. Consequent to
though Rupee has been the devaluation of Pound
much depreciated sharply, Sterling, Rupee was
virtually India’s trading automatically devalued to the
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