General Knowledge - Indian Economy - Discussion
Discussion Forum : Indian Economy - Indian Economy (Q.No. 6)
6.
Devaluation of a currency means
Discussion:
32 comments Page 1 of 4.
Amit said:
1 decade ago
In international market for exchange of any goods and services the standard currency is dollar.
So if India want to buy something then he must need dollar and american give them dollar 1 dollar and take 50 rupee because demand of dollar is more than its supply. The rate change is changed continuously because of growth rate.
So if India want to buy something then he must need dollar and american give them dollar 1 dollar and take 50 rupee because demand of dollar is more than its supply. The rate change is changed continuously because of growth rate.
Ehsan said:
1 decade ago
@Div - The example you explained, the purchasing power of rupee has appreciated.
Simple, you were buying a dollar for Rs.50. Now you are buying the same dollar for Rs.35. Now paying Rs.15 less for same dollar. It is the dollar which has actually depreciated vis-a-vis rupee.
Simple, you were buying a dollar for Rs.50. Now you are buying the same dollar for Rs.35. Now paying Rs.15 less for same dollar. It is the dollar which has actually depreciated vis-a-vis rupee.
Tejaswi said:
1 decade ago
There are two scenarios a) devaluation b) depreciation.
If value of currency was reduced due to market forces i.e. demand and supply its depreciation of currency.
But when the government or other legal authority reduces the value of their currency its called devaluation.
If value of currency was reduced due to market forces i.e. demand and supply its depreciation of currency.
But when the government or other legal authority reduces the value of their currency its called devaluation.
Div said:
1 decade ago
That means, fall in the purchasing power of a currency, for instance, in international market, when a doller was equal to rs. 50, and later a dollar equals to rs. 35, that signifies tht the value of rupee has devaluated.
Rukmini said:
1 decade ago
Devaluation of currency means reduction in the value of currency.
Ex. If we are sending Rs.45 for 1$ but now 1$=Rs50, It means we have send more.
It shows value of Rupee is weak as compared with dollar.
Ex. If we are sending Rs.45 for 1$ but now 1$=Rs50, It means we have send more.
It shows value of Rupee is weak as compared with dollar.
Pri said:
1 decade ago
@Pri.
Why dollar is more valued one, when comparing to Indian money.
Dollar is also one of the currency value why it is more valid. And why it is standardized currency?
Please tell me answer.
Why dollar is more valued one, when comparing to Indian money.
Dollar is also one of the currency value why it is more valid. And why it is standardized currency?
Please tell me answer.
(1)
Rigzin chosdon said:
1 decade ago
The first answer is correct because for eg if we spent RS 48 for 1$ earlier but now we spent RS50 for 1$ that means the value of our Indian money is fall, As spent more our money for 1$.
Prasad said:
1 decade ago
Can anyone explain? Who has decided the currency rate of one country with respect to other country, and How it has been decided ?
Why can't 1 Rupee = 1$ ?
Why can't 1 Rupee = 1$ ?
(1)
Divyesh patel said:
1 decade ago
When we have to take the money for our country to other country at a time they will evaluate our currency that is create a big problem for our country.
Manoj said:
1 decade ago
Any body have an idea - How one country devaluate its currency and why they do it?
Please if someone have an answer please reply on.
Please if someone have an answer please reply on.
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