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Rs.Appreciations/Depreciations.

28 September 2007

Can anyone having Ideas that Anytime in their life they have come across the situations where Indian Government ever Support it's Own Currencies?

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2 Replies

Prakash Popat (3134 Points)
Replied 28 September 2007

Once upon a time We used to take license for hearing Radio,Bureaucrat's working under instructions from the advanced country and never bother for people of it's own country as a results as and when they get chances to hide their inefficiencies they devalue their own currencies and unfortunately nobody questions their move,Now Rs appreciating of it's own on account of market forces Government Instead of playing their Roles of Umpiring,Intervene market through RBI,ICAI should register strongest possible protest against such move in the betterment of 1Billion Population.

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Ankit Dangayach (Chartered Accountant) (691 Points)
Replied 30 September 2007

In the past RBI comes to rescue Exporters by actively purchasing dollors but this time the situation is entirely different as Inflows are very strong and RBI has to manage Inflation also.Rbi is actively buying dollors in last 3-4 months but the pace of inflows are very strong and due to this Rbi efforts does not expected Yield expected results.Recently RBI also increases overseas investment limit to encourage Foreign currency outflows.