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Today Date : Tuesday, May 21, 2024

Depreciation of Rupee and Foreign exchange situation

Depreciation of Rupee and Foreign exchange situation

The opposition parties are accusing that all sectors like trade, industrial development, investments and employment in the country have been completely destroyed due to the wrong economic policy of the Union Government in India. Economists also point out and criticize the same.

In particular, the Indian rupee has also fallen sharply against the US dollar due to the continuing fall in stock markets and the fall in GDP. The rupee has recently crossed 83 for the first time in its history against the dollar, which has been depreciating for the past few months.

This year alone the value of the rupee has fallen by 10 to 12 percent. Due to this, the Indian government is giving a large amount of foreign exchange to the imported goods. But at the same time foreign exchange reserves have declined rapidly. Also, the RBI sold its dollar holdings to prevent the depreciation of the rupee.
In a report released on October 28, the Reserve Bank said foreign exchange reserves declined by $3.85 billion to $524.52 billion in the week ended October 21. This has caused great consternation among economic critics.

It has been reported that the RBI has so far spent more than 100 billion dollars in foreign exchange to deal with the depreciation of the Indian rupee. However, the depreciation of the rupee could not be prevented.
The Prime Minister Modi-led BJP government and the RBI need to pay serious attention... it has become imperative.Indian economy should be restored to stability quickly!