SMT.CHANDIBAI HIMATHMAL MANSUKHANI COLLEGE

Presented by:

HARSHA MATTA

SYBFM

CHM COLLEGE

ULHASNAGAR

Why fall in rupee?

Introduction

45

40

50

PROFIT for Exporters→Sell Choclates $1=45

$1=50

LOSS for Importers→Buy choclates $1=45

$1=50

Deprecation Of Rupee

RUPEE APPRECIATES

RUPEEDEPRECIATES

More and more

rupees are brought in

our country and

dollars are sold

More and more

rupees are sold and

dollars are brought

Impact↑Imports

↑Depreciation In Rupee

↑Inflation

↑Interest Rates

↓Fixed Income

↓ Growth

↓Jobs

Importers Sells Rupees & Buy Dollars

There Is No One To Buy Rupee How Will It Appreciate?

High Purchase Of Dollars → more Depreciation In Rupee

FY12 Estimates

Imports>Exports

$470bn>$320bn

-$150bn Trade Deficit

+$90bn Service Revenue

-$60bn Net Deficit

IMPORTS 35BN

11BN CRUDE OIL

PRODUCTIVE ASSET

1.REFINED2.CREATES JOBS ETC

10BN GOLD

UNPRODUCTIVE ASSET

1. 1/3rd OF IMPORTS2. STORAGE

14BN OTHER

Productive And Unproductive Assets

Reason

Every year→1000tones of gold is imported

Overall gold=total GDP almost

What if no gold imports?

Exports=imports

So if u put the same money in investments your income will increase

Loan taken

Imports faster than exports impacting stock market,corporates etc

Why demand for dollar is high?

India has taken loan from Europe

Europe is worsened

Foreign banks are not giving loans to India. Instead pressurizing to give

back loan→pressure on rupee

Chinese currency

China not affected?

Whole country is facing problems why not china?

This is because Yuan is always remains stable neither depreciates nor

appreciates.

Solution?

To balance demand & supply

Proper implementation of monetary policy and fiscal policy in our

country

Stability in imports & exports,etc.