INDIAN RUPEE WEAK AGAINST DOLLAR.
The Minister of Finance, the economists,RBI Governor and others
give various reasons why the rupee is weak against the US Dollar.
But the common man still wonders why our rupee is weak against
US dollar since independence and even after 66 years.There are
small countries like Phillipines ,Israel,Singapore,Malaysia,Thailand
New Zealand,Egypt,Norway,and even Mauritius whose currencies
fetch better value against US dollar.Afterall, it is India's pride that
our currency fetch good value against other International
currencies like USD,GBP,Euro etc.Of course,our currency,the rupee
is not fully convertible and hence we donot know the real value of our rupee against other currencies.
As a common man one wonders, inspite of having about 320 billion
US dollar reserves,why the rupee should be kept weak.Is it to protect
the Exporters or and to incentivise Indians who have kept money
abroad?.Or is it the high inflation in our country a major reason
for this weak rupee?.
How we compare against China in various parameters.
Currency value Inflation Public Debt Reserves
vis-a-vis 1USD rate(%) (%) of GDP in USD.
1. China 6.2486 Yuan 3.1 31.7 3.341
2. India 59.00 Rupees 6.70 49.6 320.00
Data Source: Collected from various sources.