{"id":13139,"date":"2022-08-03T14:07:24","date_gmt":"2022-08-03T08:37:24","guid":{"rendered":"https:\/\/triumphias.com\/blog\/?p=13139"},"modified":"2022-08-03T14:07:24","modified_gmt":"2022-08-03T08:37:24","slug":"rupee-not-collapsing-says-fm","status":"publish","type":"post","link":"https:\/\/triumphias.com\/blog\/rupee-not-collapsing-says-fm\/","title":{"rendered":"Rupee not collapsing, says FM"},"content":{"rendered":"<h2><span style=\"color: #ff0000;\">(Relevent\u00a0 for \u2013Gs paper-3(Indian economy and issues related to planning ,mobilization of resources and growth)<\/span><\/h2>\n<ul>\n<li><strong>There is no collapse in therupee\u2019s value andthe Re-serve Bankof India (RBI) is only intervening in the forex markets to rein in volatility,Union Finance Minister Nir-mala Sitharaman assured Parliament on Tuesday.<\/strong><\/li>\n<\/ul>\n<ul>\n<li><strong>\u201cIndian rupee\u2019s fluctua-tions are more versus theU.S. dollar and even there,its performance is much bet-ter than its own peers,\u201d shesaid, during Question Hourin the Rajya Sabha.<\/strong><\/li>\n<\/ul>\n<p><span style=\"text-decoration: underline;\"><strong><span style=\"color: #0000ff; text-decoration: underline;\">Appreciation Vs Depreciation<\/span><\/strong><\/span><\/p>\n<ul>\n<li>In a floating exchange rate system,\u00a0market forces (based on demand and supply of a currency)\u00a0determine the value of a currency.<\/li>\n<li>Currency Appreciation:\u00a0It is an increase in the value of one currency in relation to another currency.\n<ul>\n<li>Currencies appreciate against each other for a variety of reasons, including government policy, interest rates, trade balances and business cycles.<\/li>\n<li><strong>Currency appreciation discourages a country&#8217;s export activity<\/strong>as its products and services become costlier to buy.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span style=\"text-decoration: underline;\"><span style=\"color: #0000ff;\"><strong>Depreciation Vs Devaluation:<\/strong><\/span><\/span><\/p>\n<p>If the value of the\u00a0Indian Rupee is weakened through administrative action,\u00a0it is devaluation.<\/p>\n<p>While the\u00a0process is different for depreciation and devaluation,\u00a0there is no difference in terms of impact.<\/p>\n<ul>\n<li>India used to\u00a0follow the administered or fixed rate of exchange until 1993,\u00a0when it moved to a\u00a0market-determined process or floating exchange rate<strong>.<\/strong><\/li>\n<\/ul>\n<p>China still adheres to the former.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Relevent\u00a0 for \u2013Gs paper-3(Indian economy and issues related to planning ,mobilization of resources and growth) There is no collapse in<\/p>\n","protected":false},"author":1,"featured_media":12088,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[42,844,1038,43,72,69],"tags":[],"class_list":["post-13139","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general-studies-iii-technology-economic-development-bio-diversity-environment-security-and-disaster-management","category-gs","category-gs-mains","category-indian-economy","category-internal-security","category-science-and-technology"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/13139","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/comments?post=13139"}],"version-history":[{"count":1,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/13139\/revisions"}],"predecessor-version":[{"id":13140,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/13139\/revisions\/13140"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/media\/12088"}],"wp:attachment":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/media?parent=13139"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/categories?post=13139"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/tags?post=13139"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}