Some of the denominations higher than USD are Kuwaiti Dinar, Bahrain Dinar, British Pound and Euro. Dollar’s value has been always higher than most of the currencies. Its status is on a level where most of the international trade and exchange is valued using this currency. US Dollar is considered as one of the most valuable currencies in the world. For example, an interbank exchange rate of 114 Japanese yen to the United. It is also regarded as the value of USD to INR in relation to another currency.You can start analysing the change in rate of 1 USD to INR in 1947 and see how exchange rate kept increasing in the coming years. Canadian Dollar / Indian Rupee (INR), 59.9.Here, a chart will show you the changing value of 1 USD to INR. Canadian Dollar / US Dollar, 0.7977, 0.8172. US Dollar / Canadian Dollar, 1.2236, 1.2536.Dollar vs Rupee historyThe history essentially starts from the time when the Britton Woods agreement was passed in 1944. Here it is believed that 1 Pound was equal to 13.37 RupeesDuring 1947, and that’s why the value of USD should be INR 4.16 in 1947. The most common one is however that there was no metric system soAnother argument is that before 1947, IndiaWas a British ruled state, so the value of INR was higher because value ofPound was higher. It is believed that 1 INR used to be equalThere are multiple arguments about how 1 Dollar rupees in 1947 had a better value. When India became independent in 1947 theSituation was very much different.Key factors that played a role in the current status of Indian Rupee (INR)Rupee has been through a lot of situations that kept bringing down its value.Multiple Economic Crisis, Privatization, Devaluation and loans from The WorldBank played a role in determining the value of 1 USD to INR over and over again.In the last ten years during which period of the great recession of 2008 has passed the US federal fund rates have been flat at 0.25 percent. When India gained independence, it had to accept the internationalMetric system and the value of rupee changed at the same moment. The ever changing rates of Indian Currency to US DollarIn official records, 1 INR was never equalTo 1 USD. As per the modern metric system, the value ofINR to USD in 1913 should be 0.09 and if we keep the 1 USD = 1 INR argumentThen it the value went to 3.31 in 1948 and 3.67 in 1949, by 1970, INR was 7.50To 1 USD. Everyone was slowly adjusting to it during the time India gained independence.INR has consistently gone down.
1966 economic crisesDuring this time, India was still a developing economy. Making the lower denominations a part of Indian currency, the money was made accessible to every Indian citizen but it also increased the value of INR. This move was considered important because decimalisation always played a part in modernisation and revolutionary change in the currency system and for the economy. The prefix naye was removed but the value continued. During this phase, Indian Rupee was divided into 100 naye paise (Hindi/Urdu for new paisas). SomeOf the key factors that made this happened are listed below DecimalisationDecimalisation happened in 1957. Universal generatorThis was another factor that led to the steep devaluation of 57 percent, taking the value of the rupee to Rs 7.5/$.This played a huge role in bringing down the value of INR to USD. There were multiple changes to India’s leadership after Pandit Jawaharlal Nehru. The 1966 devaluation was the result of the first major financial crisis the government faced.India faced two major wars, against China and Pakistan during this time. India had a consistent balance of payments deficits since the 1950s. There were many attempts to keep positive trade balance but ultimately they failed. Constant delays brought it on theVerge of defaulting. This reform was a part of the efforts that had begun in the1970s when India relaxed restrictions on imported capital goods as part of itsThis economic crisis happened because theGovernment had a balance of payment problem. In 1991 Indian economists realized the value ofLiberalisation. (Also read: 8 Countries where Rupee is King) 1991 economic crisesEconomic reform in India. Stats simulator ragnarokThe reason behind this change was the surge in dollar demand from imports and capital outflows by FIIs pulling out the debt market that resulted in a fall in the value of the rupee. Depreciation in 2013It was noted that on May 22, 2013, INR was 55.48/$ and within fifteen days it fell to 57.07/$. Another reason for this problem was the openMarket that had taken control of its exchange. It shows India was an economically backward country and increases the rates of imports. ConclusionThe value of INR to USD determines a lot of things. ALot was said and done about the step but it ended up playing a role in bringingINR to the range of 67 to 71 in the following years.
0 Comments
Leave a Reply. |
AuthorConnie ArchivesCategories |