Advantage of appreciating rupee
June 10, 2023
  • Circulation
  • Advertise
  • Careers
  • About Us
  • Contact Us
Organiser
  • ‌
  • Bharat
  • World
  • G20
  • Editorial
  • Analysis
  • Opinion
  • Sports
  • More
    • Defence
    • RSS in News
    • Azadi Ka Amrit Mahotsav
    • My States
    • Vocal4Local
    • Business
    • Special Report
    • Culture
    • Sci & Tech
    • Entertainment
    • Education
    • Books
    • Interviews
    • Travel
    • Health
    • Obituary
    • Podcast
SUBSCRIBE
No Result
View All Result
  • ‌
  • Bharat
  • World
  • G20
  • Editorial
  • Analysis
  • Opinion
  • Sports
  • More
    • Defence
    • RSS in News
    • Azadi Ka Amrit Mahotsav
    • My States
    • Vocal4Local
    • Business
    • Special Report
    • Culture
    • Sci & Tech
    • Entertainment
    • Education
    • Books
    • Interviews
    • Travel
    • Health
    • Obituary
    • Podcast
No Result
View All Result
Organiser
No Result
View All Result
  • Home
  • Bharat
  • World
  • G20
  • Editorial
  • Opinion
  • Analysis
  • Culture
  • Defence
  • RSS in News
  • My States
  • Vocal4Local
  • Subscribe
Home General

Advantage of appreciating rupee

Archive Manager by WEB DESK
Aug 5, 2007, 12:00 am IST
in General
Share on FacebookShare on TwitterTelegramEmail

Appreciation of rupee would make imports cheaper and as such it would be cheaper to buy goods from abroad. Petrol should be cheap and so would be gold. Food items which are scarce in the country like pulses, edible oil etc. would get cheaper. All this may send a negative impact on agriculture and industry in the country, for which we may have to make fiscal adjustments.

How to take the benefit of appreciating rupee
First of all those who feel appreciating rupee is a curse should change their opinion. Our commerce minister says that strengthening rupee would send a negative impact on exports. When he says so, he seems to be echoing the historical argument in favour of devaluation of rupee. Exporter had always argued that more and more of devaluation of rupee is the only way to increase exports. Accepting such arguments, rupee was devalued in 1966 and later in 1983-84. Since then rupee has depreciated from rupees 7.80 in 1983 to rupees 49 by mid 2002. But despite depreciating rupee the rate of growth of our exports has always been less than the rate of growth of our imports. If we think in terms of economic principles, under such circumstances appreciation of rupee rather than depreciation of rupee is the only way to reduce our trade deficit. More important is the fact that recent appreciation of rupee is not due to government'sintervention but due to forces of the market. Supporters of globalisation have always been in favour of free market forces. Why are they arguing for restricting this tendency though RBI'sintervention is beyond comprehension?

Government can take advantage of appreciating rupee
Due to appreciating rupee, people all over the globe, are getting attracted to this currency. It is obvious that now since dollar is depreciating vis-?-vis rupee, people would prefer to keep rupees, instead of dollars. Under such circumstances government, is working fast on a scheme to issue rupee dominated international debt. In the past, official debt as well as commercial borrowings both were repayable in terms of dollars. Not only government can take the benefit of borrowing at cheap rate of interest, but Indian companies can also borrow internationally at cheap rate of interest by issuing rupee dominated debt. The proposal has been mooted by the Department of Economic Affairs, Ministry of Finance and is being discussed by policy makers at a higher level. There are many other advantages of issuing rupee dominated debt. One, there would not be any unwarranted expansion of money supply despite borrowings from abroad. Two, there would not be any currency related risk because loan would be repayable in rupees. Three, there would not be any risk of large scale flight of capital in the event of fast upheavals in exchange rates. Infact now the risk of upheavals in the exchange rates would be borne by foreign investors. Four, government companies and private companies may now have the facility to borrow at a lower rate of interest and as such this would help us in keeping the rate of interest low in the economy. Global rating agency-Standard and Poors have increased India'ssovereign credit rating to investment grade (BBB) from speculative rate (BB+). Experts feel that due to this improved rating the country has become attractive to a range of global investors. This would help the government to raise debt at highly competitive rates.

ShareTweetSendShareSend
Previous News

SPECIAL ON 150 YEARS OF 1857 Did Moscow play fraud on Marx??VIII Marx of 1857, discovered in 1957

Next News

Conservative Estimates Secular lobbyists jeopardise war on terror

Related News

Study discovers cells linking chronic psychological stress to inflammatory bowel disease

Study discovers cells linking chronic psychological stress to inflammatory bowel disease

Auto Draft

Indo-Canadian MP demands action on celebration of Indira Gandhi’s assassination; says new low for Khalistan supporters

Akhand Bharat Map in the New Parliament is a cultural, historical one, not political: Nepal’s PM Prachanda

Akhand Bharat Map in the New Parliament is a cultural, historical one, not political: Nepal’s PM Prachanda

Uttar Pradesh: Shahid barged into minor’s house, raped and hammered her to death; hangs her body before fleeing

Uttar Pradesh: Shahid barged into minor’s house, raped and hammered her to death; hangs her body before fleeing

RSS founder Dr Hedgewar & his contribution to the freedom struggle

RSS founder Dr Hedgewar & his contribution to the freedom struggle

Love Jihad: Here is a list of 60 incidents where Hindu women have been killed by their Muslim partners

Love Jihad: Here is a list of 60 incidents where Hindu women have been killed by their Muslim partners

Comments

The comments posted here/below/in the given space are not on behalf of Organiser. The person posting the comment will be in sole ownership of its responsibility. According to the central government's IT rules, obscene or offensive statement made against a person, religion, community or nation is a punishable offense, and legal action would be taken against people who indulge in such activities.

Latest News

Study discovers cells linking chronic psychological stress to inflammatory bowel disease

Study discovers cells linking chronic psychological stress to inflammatory bowel disease

Auto Draft

Indo-Canadian MP demands action on celebration of Indira Gandhi’s assassination; says new low for Khalistan supporters

Akhand Bharat Map in the New Parliament is a cultural, historical one, not political: Nepal’s PM Prachanda

Akhand Bharat Map in the New Parliament is a cultural, historical one, not political: Nepal’s PM Prachanda

Uttar Pradesh: Shahid barged into minor’s house, raped and hammered her to death; hangs her body before fleeing

Uttar Pradesh: Shahid barged into minor’s house, raped and hammered her to death; hangs her body before fleeing

RSS founder Dr Hedgewar & his contribution to the freedom struggle

RSS founder Dr Hedgewar & his contribution to the freedom struggle

Love Jihad: Here is a list of 60 incidents where Hindu women have been killed by their Muslim partners

Love Jihad: Here is a list of 60 incidents where Hindu women have been killed by their Muslim partners

India is recognised as a responsible development partner and voice of the Global South: President Droupadi Murmu

India is recognised as a responsible development partner and voice of the Global South: President Droupadi Murmu

Indian Catholic Church Sex Scandal: Priest exploiting Nuns and Hindu women exposed

Indian Catholic Church Sex Scandal: Priest exploiting Nuns and Hindu women exposed

Chhattisgarh PSC 2021: Amid allegations of fraud, nepotism in exam, Commission notifies disposal of old documents

Chhattisgarh PSC 2021: Amid allegations of fraud, nepotism in exam, Commission notifies disposal of old documents

Find out about the world’s first global summit on AI safety and regulation

Find out about the world’s first global summit on AI safety and regulation

  • Privacy
  • Terms
  • Cookie Policy
  • Refund and Cancellation
  • Delivery and Shipping

© Bharat Prakashan (Delhi) Limited.
Tech-enabled by Ananthapuri Technologies

No Result
View All Result
  • Home
  • Bharat
  • World
  • Editorial
  • Analysis
  • Opinion
  • Defence
  • Culture
  • Sports
  • Business
  • RSS in News
  • My States
  • Vocal4Local
  • Special Report
  • Sci & Tech
  • Entertainment
  • Education
  • Books
  • Interviews
  • Travel
  • Health
  • Obituary
  • Podcast
  • Subscribe
  • Advertise
  • Circulation
  • Careers
  • About Us
  • Contact Us
  • Privacy Policy
  • Cookie Policy
  • Terms of Use
  • Refund and Cancellation

© Bharat Prakashan (Delhi) Limited.
Tech-enabled by Ananthapuri Technologies