rupee depreciation
Post on 06-May-2015
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GROUP- FINANCE
INDEXTermologyReason for rupee depreciationImpact of rupee depreciationWho’s are benefitedWho’s are not benefitedMeasures taken by RBIConclusion
Un rha hai na tu
o rha hu main…..
Before we start..
Repo rate
Reserve repo rate
Cash reserve ratio
Foreign Institutional Investor(FII)
Repo Rate
The rate at which the RBI lends money to commercial bank is called repo rate.
Reserve Repo Rate The rate at which RBI borrows money from commercial bank is called reserve repo rate.
Cash Reserve Ratio
The amount of fund that the bank have to keep with the RBI.
Foreign Institutional Investor(FII)
Foreign Institutional Investor, an investor or investment fund that is from or registered in a outside of India.
How Currency Valued?
When the demand is greater than supply, the value of the currency increases and vice-versa.
What is rupee???The rupee is the name for the currencies of
India
The first currency called "rupee" was introduced in the 16th century by Sher Shah Suri
Rupee Depreciation
More and more rupee are sold and dollar are brought.
Example: suppose we import more crude oil from abroad so we provide them our currency for purchasing oil so our currency will go out outside.
Rupee Appreciation More and more money are brought in our
country an dollars are sold. Example- If export will increase in the
country it will increase the value of rupee
Reason For Rupee Depreciation
The Balance Of Payment(BOP) is the place where countries record their monetary transaction with the rest of the world
In the Current account, goods, services, income and current transfer are recorded
In the capital account, physical assets such as building or factory are recorded
Trade deficit
Low forex reserves
Growth slowdown
Dependence on foreign money
Impact Of Rupee Depreciation
Imported goods
FUEL PRICE
Tourism
Students studying abroad
RBI’s monetary policy
Who’s BenefitedBeneficial to the exporter
Benefited to the IT sector
Benefit to the hotel industry
Benefit to NRI investor
Who’s Not Benefited..Impact on inflation
Impact on fiscal deficit
Negative impact on Indian student
Negative impact on FII flow to Indian market
solution
Measure Adopted By RBIRBI increases restriction on gold import by
cancelling margin funding to import gold. The government increased import duty on gold import to 10% from 15%
The government is allow 51% Foreign Direct Investment(FDI) in multi brand retail
RBI is considering increasing its import of crude oil from Iran, and pay for it directly in Indian rupees.
Cont..
RBI will conduct sale of government of Indian securities to suck up Rs 12000 crore
RBI increased the current overseas borrowing limit for banks from 50% to 100%
CONCLUSION
Dollar on escalator.. Rupee on ventilator... Nation on ICU... We are in coma... Manmohan
in honeymoon... Onion in showroom... God bless India
THANK… Q
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