2 Comments

1. Is RBI regularisation the only way to appreciate or depreciate our currency?

2. What if slowly and gradually 1Rs becomes 1USD one day? Only sudden fluctuations are bad right?

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Hi Sreyus,

1. In terms of general currency appreciation and depreciation, the RBI controls volatility while the general rate is determined by the supply and demand of rupees in the market. There are non-regulatory ways of increasing/decreasing demand for rupees eg. by increasing imports/exports.

2. 1 INR = 1 USD is a big if, and very optimistic. If that were to happen slowly and gradually, it would be very good for the Indian economy. Now for the second part- in my opinion, it depends on how you look at it. Long-term appreciation is good but depreciation is bad.

I hope I could answer your questions :)

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