Archive for the ‘ Currency ’ Category

Monetary Policy: 2008

MEASURES ANNOUNCED Repo Rate increased by 50 bps from 8.5 per cent to 9 per cent CRR to be hiked by 25 bps to 9 per cent with effect from August 30, 2008 Bank Rate kept unchanged at 6 per cent Reverse Repo Rate under the liquidity adjustment facility (LAF) kept unchanged at 6 per [ READ MORE ]

foreign exchange reserve: India

Foreign exchange reserves are important indicators of ability to repay foreign debt and for currency defense, and are used to determine credit ratings of nations. Large reserves of foreign currency allow a government to manipulate exchange rates – usually to stabilize the foreign exchange rates to provide a more favourable economic environment.                                                                                                                                                                                                            India’s total foreign exchange [ READ MORE ]

Currency Valuation: forces on play

What are Currency Appreciations and Depreciations? If nominal exchange rates change so that one Dollar buys more Rupees, then the dollar has appreciated in nominal terms. And the Rupee has correspondingly depreciated in nominal terms because a Rupee can buy fewer U.S. Dollars. If the real exchange rate between the U.S. and India changes, which [ READ MORE ]

Inflation : Impact on Economy

Understanding inflation is crucial to investing because inflation can reduce the value of investment returns. Inflation affects all aspects of the economy, from consumer spending, business investment and employment rates, to government programs, tax policies, and interest rates. What is Inflation? Inflation is a sustained rise in overall price levels. Moderate inflation is associated with [ READ MORE ]

Indian Currency: Impcat of High Crude Price

The fall in the rupee is primarily being attributed to the high crude oil prices, which touched all-time high of over $135 per barrel on May 22, 2008. India imports 73 per cent of its crude oil requirements, thus raising concerns over its widening trade deficit-the difference between the value of goods and services exported [ READ MORE ]

India joins trillion-dollar economy club

India also joined the elite club of select countries the US, Japan, Germany, China, UK, France, Italy, Spain, Canada, Brazil and Russia which have already managed the feat.   Incidentally, this trillion-dollar GDP feat came alongside the Indian stock market crossing the $1 trillion-mark in market capitalisation. For a country’s stock-market to have market cap equal [ READ MORE ]

Follow

Get every new post delivered to your Inbox.