RUPEE DEPRECIATION

GROUP- FINANCE

INDEXTermologyReason for rupee depreciationImpact of rupee depreciationWho’s are benefitedWho’s are not benefitedMeasures taken by RBIConclusion

Un rha hai na tu

o rha hu main…..

Before we start..

Repo rate

Reserve repo rate

Cash reserve ratio

Foreign Institutional Investor(FII)

Repo Rate

The rate at which the RBI lends money to commercial bank is called repo rate.

Reserve Repo Rate The rate at which RBI borrows money from commercial bank is called reserve repo rate.

Cash Reserve Ratio

The amount of fund that the bank have to keep with the RBI.

Foreign Institutional Investor(FII)

Foreign Institutional Investor, an investor or investment fund that is from or registered in a outside of India.

How Currency Valued?

When the demand is greater than supply, the value of the currency increases and vice-versa.

What is rupee???The rupee is the name for the currencies of

India

The first currency called "rupee" was introduced in the 16th century by Sher Shah Suri

Rupee Depreciation

More and more rupee are sold and dollar are brought.

Example: suppose we import more crude oil from abroad so we provide them our currency for purchasing oil so our currency will go out outside.

Rupee Appreciation More and more money are brought in our

country an dollars are sold. Example- If export will increase in the

country it will increase the value of rupee

Reason For Rupee Depreciation

The Balance Of Payment(BOP) is the place where countries record their monetary transaction with the rest of the world

In the Current account, goods, services, income and current transfer are recorded

In the capital account, physical assets such as building or factory are recorded

Trade deficit

Low forex reserves

Growth slowdown

Dependence on foreign money

Impact Of Rupee Depreciation

Imported goods

FUEL PRICE

Tourism

Students studying abroad

RBI’s monetary policy

Who’s BenefitedBeneficial to the exporter

Benefited to the IT sector

Benefit to the hotel industry

Benefit to NRI investor

Who’s Not Benefited..Impact on inflation

Impact on fiscal deficit

Negative impact on Indian student

Negative impact on FII flow to Indian market

solution

Measure Adopted By RBIRBI increases restriction on gold import by

cancelling margin funding to import gold. The government increased import duty on gold import to 10% from 15%

The government is allow 51% Foreign Direct Investment(FDI) in multi brand retail

RBI is considering increasing its import of crude oil from Iran, and pay for it directly in Indian rupees.

Cont..

RBI will conduct sale of government of Indian securities to suck up Rs 12000 crore

RBI increased the current overseas borrowing limit for banks from 50% to 100%

CONCLUSION

Dollar on escalator.. Rupee on ventilator... Nation on ICU... We are in coma... Manmohan

in honeymoon... Onion in showroom... God bless India

THANK… Q