Should Indian rupee be devaluated?

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╬Switch╬

╬Switch╬

In the zone
The price of dollar is inflating like anything, so why doesn't the government devaluate the currency to something like 1 Rupee = 1 pound like it was earlier? And keep it fixed.
Or are there more problems involved in it?
 
victor_rambo

victor_rambo

हॉर्न ओके प्लीज़
If 1USD=I rupee, all IT companies shall lose current and business. Many shall become jobless.
 
Stuge

Stuge

Youngling
hmm what will happen to those who have invested in dollars ?

dude it looks very simple ,but its not .
 
ravi_9793

ravi_9793

TechTin.com
If this happens I will be very happy...because I pay in USD, and get paid in INR.

But I think its not under Govnt............ refer here:
*en.wikipedia.org/wiki/Purchasing_power_parity
 
RCuber

RCuber

The Mighty Unkel!!!
Staff member
╬Switch╬ said:
The price of dollar is inflating like anything, so why doesn't the government devaluate the currency to something like 1 Rupee = 1 pound like it was earlier? And keep it fixed.
Or are there more problems involved in it?
Click to expand...
its not as simple as it sounds :p

╬Switch╬ said:
No I mean conversion like making 50 current Rupees equal to 1 new Indian rupee.
And not just altering rates.
Click to expand...

AFAIK the govt had come up with this kind of a plan before but it was not for india only but the the SE asian countries. They wanted to create currency similar to the Euro in europe. It was a few years back and cannot remember correctly abt this.
 
OP
╬Switch╬

╬Switch╬

In the zone
After reading the PPP article on Wikipedia ,looks like more advanced countries have better conversion rates, but I cant understand Japan's.
And also how can rupee naturally overcome the dollar?
 
M

mastermunj

In the zone
With the fear of loosing IT jobs and no out sourcing from USA, we should not stop thinking to make 1USD = 1INR.

Its my dream to make this happen.

UK has better currency then US and still they are doing very well, in fact they have many jobs there..

Its about willingness to make things right rather than thinking consequences of making things right.

Jaago India Jaago :D:D:D:D

NOTE: This is my personal thought, not meant for hurting anyone, but i assure you all of the day when the above formula will come true.. 1USD = 1INR.
 
victor_rambo

victor_rambo

हॉर्न ओके प्लीज़
^Right now, we cannot think of 1USD=1INR. Let the money flow in due to outsourcing and then we can think of that!

confused said:
+1google
offtopic:congo for crossing 1000 posts;)
Click to expand...

Thanks :D, btw I am goona make it 'young'
 
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slugger

slugger

Banned
╬Switch╬ said:
The price of dollar is inflating like anything, so why doesn't the government devaluate the currency to something like 1 Rupee = 1 pound like it was earlier? And keep it fixed.
Or are there more problems involved in it?
Click to expand...

a bit of mistaken notion you have... at present rupees is indeed getting devalued

earlier you had to pay 39 rupees to get a 1 dollar note. now you are paying 49 rupees to get that same 1 dollar USD note. meaning todays 49 rupees has same value as yesterdays 39 rupees.

also artifically devaluing rupees will be a disaster - we will have to spend more money to buy goods from other countries as India imports more than it exports. This increas in import cost will b transferred to the consumer, thus it will raise prices of everyday goods in India.

China artificially devalues its currency bcos it has a very strong export market. Thus its devalued currency helps it to sell low cost goods to the foreign market.

Also India cannot bring its conversion rtion to Rs.1 = 1 pound without stopping the printing of money. and if you stop prinitng money you will not have any money to buy anything
 
Sukhdeep Singh

Sukhdeep Singh

Host4Cheap.org
Deciding conversion rates is not in hand of Govt. Printing More money requires Gold Reseves. Read this to understand

*wiki.answers.com/Q/How_the_currency_exchange_rate_is_calculated
 
M

maxjaja

Right off the assembly line
The price of dollar is inflating like anything, so why doesn't the government devaluate the currency to something like 1 Rupee = 1 pound like it was earlier? And keep it fixed.
Or are there more problems involved in it?
Click to expand...
why not be a little more ambitious and say 1 rupee = 100 pounds :D

look the exchange rate alone is not an parameter of how good an economy is doing and emotions dont play a part in business....the less the value of the rupee - the more attractive it is for investors - which means more jobs or money for india

i dont think rupee valuations are a concern if it is stable or changes gradually in any directions. the only problems are if the changes are very sudden - even the rupee going from high 39s to mid 48 is less than a year is not a concern for rbi right now cos india has good currency reserves - only problem is india's external debt which is around 5% of gdp which comes at a high interest rate - but a proper balance is maintained as of now - so need for revaluation.

and think about it if india decides to make 1 rupee 50 rupees (or 85 incase u want it as pound) of yesterday - cant other countries decide the same and reset thier currincies back to 1 pound as 85 rupees or anything like that

look at japan - 1 dollar = 100 yen now (was 120 few days back) but it is more bigger economy than UK and more Per capita income than US - so rupee valuation is a seriously non issue - live with it rather than changing it
 
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