How to stop depreciating

rupee
What Is currency

 Currency is made for Latin word CURRENS . It refer to money in any

form when it is actual use or circulations a medium of exchange
especially circulating banknotes or coins.
What is exchange rates

 Exchange rate is the price at which two currencies can be

exchange against each other . This is use to trade between two or
more countries. The exchange rate is classified in two form.
1. fixed
2. floating
History of depreciation of rupee

 In about 1947 after independence INDIA became independent

but after 1960’s trade deficit was increase but could not borrow
money from abroad so result government issue bond to RBI that
effect to increase money supply and inflation
 The indo Pakistan war of 1965 led the US and other countries friendly
towards Pakistan to withdraw foreign aid to India, which
necessitated more devaluation. So result INDIA is spending more
money to defense .
 In 1991, India still had a fixed exchange system. . India started
having balance of payments problems since 1985, and by the end
of 1990, it found itself in serious economic trouble
Causes of depreciation of rupee

 Accounting deficit
 Interest rates
 Political instability
 Outflow of foreign capital
 Oil import
 Mounting demand of dollar
 Rupee speculation
 Demand and supply of currency
Dollar is most traded currency

 Dollar is most traded currency according ISO report in total

circulation of money in world the dollar acquire 87.5 share. Because
o economy of USA . The economy of USA is 20 trillion us dollar per
year. At total ISO report INDIAN rupee Is in circulation of total is 1.1%
so that our rupee is not popular that value of INDIAN rupee is fallen
Different currencies and their
circulation in world
Most traded currencies by value
Currency distribution of global foreign exchange market turnover[8]
ISO 4217 code % daily share
Rank Currency
(symbol) (April 2016)
1 United States dollar USD (US$) 87.6%
2 Euro EUR (€) 31.4%
3 Japanese yen JPY (¥) 21.6%
4 Pound sterling GBP (£) 12.8%
5 Australian dollar AUD (A$) 6.9%
6 Canadian dollar CAD (C$) 5.1%
7 Swiss franc CHF (Fr) 4.8%
8 Renminbi CNY (元) 4.0%
9 Swedish krona SEK (kr) 2.2%
10 New Zealand dollar NZD (NZ$) 2.1%
11 Mexican peso MXN ($) 1.9%
12 Singapore dollar SGD (S$) 1.8%
13 Hong Kong dollar HKD (HK$) 1.7%
14 Norwegian krone NOK (kr) 1.7%
15 South Korean won KRW (₩) 1.7%
16 Turkish lira TRY (₺) 1.4%
17 Russian ruble RUB (₽) 1.1%
18 Indian rupee INR (₹) 1.1%
19 Brazilian real BRL (R$) 1.0%
20 South African rand ZAR (R) 1.0%
Other 7.1%
Total[9] 200.0%
Effects of depreciation of INDIAN
rupee
 Higher inflation
 Impact on foreign investors
 Encourage or discourage export
 Increase cost of borrowing
 Increase FISAL burden
 Increase import bill
 Impact of import prices and price of goods
How to solve the problem

 Improving the climate for foreign investors

 Making government bond available to a wider investor base
 Increase in export of INDIA
 Measures by RBI to strengthen the rupee
Manage import bill
Attracting foreign investors
Conclusion

 In end we can say that our currency value is decreasing day by

day.it create many problem like trade deficit or higher inflation etc.
to solve the problem INDIAN govt. take steps to produce more and
more products to fulfill the demand of overall people that help to
decrease import and step to increase export.
Thanks for watching