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Doubt about foreign currency

IPCC 1047 views 2 replies
Actually foreign currency has the high value more than indian rupee. In this circumstances, if we go abroad with our money, we can purchase some of the things in foreign country. Suppose if foreigners come to india, they can purchase more things more than what we purchased in foreign country. So our prices of the articles get high price because of their coming to india.so demand is more than supplies. so price goes high. so Can i take this event as a one of the reason for high inflation rate? Pls clear my doubt. thanx in advance
Replies (2)

You can, provided the influx of tourists is appreciably high and throughout the country.

Thank you


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