Real story of American Dollar v/s Indian Rupee

[makelove_notwar]

India Shares End Lower, Rupee Hits New Low - WSJ.com


1.I/Re going to hit the century sooner than later. Shows how hollow the Indian economy is from the inside. Blasts from the Indian media about the prowess of India's economy has its limit. Just Google and see India's economy compared to Pakistan's pre-65 and again pre-71. That's the real picture. It is quite possible the wars were initiated to ruin Pakistan's ascending economy.

2. Btw, B/Taka is now 75 to the Dollar. With these present crooks gone in a few months, we will harness smuggling and flight of capital. We will curtail graft. Our currency should then be stronger than India's.

Do you have any idea how the price of currencies are controlled?

Don't just watch random videos and them form opinions.

People of India should buy only Indian products and there by aiding our economy. This way we will benefit and our economy will rise and prosper.

regarding petrol this is the only commodity which not under our control and is USA's monopoly.

I try to do my part as well. But we should look at the bigger picture. The policies and many other factors contribute majorly in the value of our currency.

 

[asad71]

Do you have any idea how the price of currencies are controlled?

Don't just watch random videos and them form opinions.

Look at the figures, man. The figures.

 

[makelove_notwar]

Look at the figures, man. The figures.

Oh come on, its has been just 6-8 months. With proper governance, the Rupee can bounce back coz the basics of our economy are strong.
If you are so good with figures, you would know that you can't just pick a random sample and then judge according to it. It would be mathematical suicide.

 

[indianpunjabi]

Buy Indian Be Indian..

I made a tough decision to buy pulsar instead of R15 .. everything counts

very gud bro

 

[Ganges Zephyr]

An Advice to all who are worrying about fall of Indian Rupee

Throughout the country please stop using cars except for emergency for only seven days (Just 7 days)
Definitely Dollar rate will come down. This is true. The value to dollar is given by petrol only.This is called Derivative Trading. America has stopped valuing its Dollar with Gold 70 years ago.

Americans understood that Petrol is equally valuable as Gold so they made Agreement with all the Middle East countries to sell petrol in Dollars only. That is why Americans print their Dollar as legal tender for debts. This mean if you don't like their American Dollar and go to their Governor and ask for repayment in form of Gold,as in India they won't give you Gold.

You observe Indian Rupee, " I promise to pay the bearer..." is clearly printed along with the signature of Reserve Bank Governor. This mean, if you don't like Indian Rupee and ask for repayment,Reserve Bank of India will pay you back an equal value of gold.(Actually there may be minor differences in the Transaction dealing rules, but for easy comprehension I am explaining this)

Let us see an example. Indian petroleum minister goes to Middle East country to purchase petrol, the Middle East petrol bunk people will say that liter petrol is one Dollar.
But Indians won't have dollars. They have Indian Rupees. So what to do now? So That Indian Minister will ask America to give Dollars. American Federal Reserve will give us dollars by taking Indian Rupees ( according to exchange rate ) , print Dollars on it and give it to the Indian Minister. Like this we get dollars , pay it to petrol bunks and buy petrol.

But there is a something wrong here. If you change your mind and want to give back the Dollars to America we can't demand them to pay Gold in return for the Dollars. They will say " Have we promised to return something back to you? Haven't you checked the Dollar ? We clearly printed on the Dollar that it is Debt"
So, Americans don't need any Gold with them to print Dollars.

But what will Americans give to the Middle East countries for selling petrol in Dollars only?

Middle East kings pay rent to America for protecting their kings and heirs. Similarly they are still paying back the Debt to America for constructing Roads and Buildings in their countries.

At present the problem of India is the result of buying those American Dollars. So if we reduce the consumption of petrol and cars, Dollar will come down

The Above Details have been provided originally in Telugu Language by Madhava Turumella and were translated to English by Radhika Gr. - See more at: Real story of American Dollar v/s Indian Rupee

@Anurag
Personal vehicles account for less than 2% of total fuel consumption in India. This is not going to help. Not talking about incompetencies and policy paralysis, the situation will ease of when India will start extracting substantial amount of gas around 2016-2018. Till then, hold your poles tight

 

[asad71]

Oh come on, its has been just 6-8 months. With proper governance, the Rupee can bounce back coz the basics of our economy are strong.
If you are so good with figures, you would know that you can't just pick a random sample and then judge according to it. It would be mathematical suicide.

1.Look at the exchange rate graph 2009 onwards. The slide down has been constant. What's happening now? Fight of capital. Lessening of NRI remittance. Falling exports mean falling production. Eventually some factories will close. Workers will get laid off. More Maoists. And so on.

2. Indian economy is in trouble. One way out is to fight a war with someone. But that is an option that will disintegrate India for good.

 

[makelove_notwar]

1.Look at the exchange rate graph 2009 onwards. The slide down has been constant. What's happening now? Fight of capital. Lessening of NRI remittance. Falling exports mean falling production. Eventually some factories will close. Workers will get laid off. More Maoists. And so on.

2. Indian economy is in trouble. One way out is to fight a war with someone. But that is an option that will disintegrate India for good.

Oh my god you are so blinded by the hate for India that you just keep on talking without thought. What about the 20 years before 2008? How is India in the BRIC? (BTW, B doesn't stand for Bangladesh, no offence).

Stop being cynical and hope that all the countries in the sub continent prosper. Pakistan and Bangladesh will get affected if the Indian economy falls, and vice-versa.

 

[oiltrader]

@Anurag
Personal vehicles account for less than 2% of total fuel consumption in India. This is not going to help. Not talking about incompetencies and policy paralysis, the situation will ease of when India will start extracting substantial amount of gas around 2016-2018. Till then, hold your poles tight

which type of gas? shale gas wellhead production cost is high.

 

[PlanetWarrior]

1.Look at the exchange rate graph 2009 onwards. The slide down has been constant. What's happening now? Fight of capital. Lessening of NRI remittance. Falling exports mean falling production. Eventually some factories will close. Workers will get laid off. More Maoists. And so on.

2. Indian economy is in trouble. One way out is to fight a war with someone. But that is an option that will disintegrate India for good.

If that is the economics which they teach you guys in Bangladesh then it remains no great wonder that your single source of economic growth is the textile and garment industry

 

[makelove_notwar]

If that is the economics which they teach you guys in Bangladesh then it remains no great wonder that your single source of economic growth is the textile and garment industry

He cracked me up. The only way to get out of economic turmoil is to fight a war it seems. India is not JP Morgan my friend.

 

[Srinivas]

1.Look at the exchange rate graph 2009 onwards. The slide down has been constant. What's happening now? Fight of capital. Lessening of NRI remittance. Falling exports mean falling production. Eventually some factories will close. Workers will get laid off. More Maoists. And so on.

2. Indian economy is in trouble. One way out is to fight a war with someone. But that is an option that will disintegrate India for good.

Stop you nonsense Mr. professional, we already disintegrated India into three parts and two parts except Bharat are suffering.

If you keep on trolling in India related threads one day that professional tag will be gone.

A weaker rupee is not a bad thing

It is the first corrective for a big trade deficit

Over three months, the rupee has slid 15% against the dollar, which is surging against most other currencies worldwide. The reason: economic recovery in the US and the continued faith in the dollar as the reserve currency of the world.

In India, there are yelps of agony over the rupee's slide, as if its value against the dollar is some sort of measure of India's standing in the world. India's economy is now more open than it ever was and the rupee's movements are subject to the vagaries of traders worldwide.

And a little depreciation is not a bad thing. Exports have been sluggish for many months as the US and Europe struggled with their own woes and lower-cost nations such as Bangladesh chipped away at our share of textile and garment exports. That could change with a weaker rupee.

The biggest gainer, of course, would be software exporter TCSBSE 2.56 % as our analysis on Wednesday showed, followed by a clutch of software, auto and machinery manufacturers. What's good for exports is good for our current account deficit, which can narrow sharply on the back of this depreciation.

Remittances are expected to rise quickly, as Indians working overseas seize this window and send dollars back home.

Discretionary imports, like fine foods, personal care products and so on will be discouraged. And gold imports, a huge drain on foreign exchange reserves, are sure to get squeezed by higher rupee prices.

The government should now focus on reining in inflation, part of the reason for the rupee's weakness and likely to go up because of that weakening.

The Reserve Bank of India has done what it could by keeping interest rates fairly high, but a lot of inflation is related to administrative lapses. Release part of the 78-million-tonne grain mountain into markets to dampen food grain inflation, now at 17%.

Ask states to scrap the APMC Acts that keep farmers in the clutches of middlemen. Clear projects quicker, so that investment materialises. Do these things, the rupee will take care of itself. India has to get growth and investment going, first and foremost.

http://economictimes.indiatimes.com...e-is-not-a-bad-thing/articleshow/21968226.cms

 

[Iggy]

Great!! Just call for Bharat Bandh for 7 days!!

No vehicle will be on the road...

May be BJP and Congress can work together on that for the benefit for this nation!!

 

[Developereo]

At present the problem of India is the result of buying those American Dollars. So if we reduce the consumption of petrol and cars, Dollar will come down

Or you could buy more of your oil from countries with a currency swap or barter agreement, bypassing USD altogether.

 

[Chinese-Dragon]

Or you could buy more of your oil from countries with a currency swap or barter agreement, bypassing USD altogether.

And what oil exporting country would be happy to take Rupees instead of US dollars right now?

Even the Indians themselves don't trust the Rupee, they would rather have Gold.

Considering that the Rupee is currently in a state of collapse, this is the worst time for a currency swap agreement. I mean who on Earth would want Rupees instead of US dollars at this point?

 

[senkakudefender]

And what oil exporting country would be happy to take Rupees instead of US dollars right now?

Even the Indians themselves don't trust the Rupee, they would rather have Gold.

Considering that the Rupee is currently in a state of collapse, this is the worst time for a currency swap agreement. I mean who on Earth would want Rupees instead of US dollars at this point?

Yen trades at nearly 100. Abe is doing some funky things now.

India need more governance , less government.