Group presentation.pptx

Group presentation.pptx

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  WHY INR ISDEPRECIATING AGAINST USD ?
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  Table Of Content 01 Introduction 02History of INR and USD 03 Reasons why INR depreciating against USD 04 Pros and Cons 05 Conclusion
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  INTRODUCTION BUY SELL Exchanging currencies betweennations at market rates is referred to as foreign exchange. Currency exchange is the process of converting one nation's currency into another. What is Foreign Exchange ? A currency's value declines when compared to other currencies, which is known as currency depreciation. Depreciation An increase in the value of one currency in comparison to another is known as currency appreciation. Appreciation
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  History of IndianRupee Birth 1947 1966 1970 2000 2013 2016 Economic Crisis Post Bretton Woods Revaluation Depreciation Demonetization
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  Indian Rupee toU.S Dollar
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  Global economic slowdown Crude oilprices India’s trade deficit FIIs and DIIs The decision by the Organisation of Arab Petroleum Exporting Countries also known as OAPEC to reduce production and the decision taken by Persian Gulf nations to double the price of crude oil led India to borrow foreign currency. India had to borrow foreign currency that lead to another reason why is the rupee falling. In spite of being one of the strongest financial countries in the world, India falls in short of effective plans that will show a difference in the country’s economic status. Get a modern PowerPoint Presentation that is beautifully designed. I hope and I believe that this Template will your Time, Money and Reputation. Contents Title The global economic slowdown is one major factor contributing to both the stock markets and the Indian currency fall. The Indian rupee falling due to the slowdown and has been unable to regain its value. Hence the conversion from USD to INR always makes for a loss.The rupee value against US dollar has always been a disappointment due to the global economic slowdown, causing abrupt losses to some of the business men Indian exports contracted for the 13th month in a row in December 2015 as outward shipments shrank 14.75% to $22.2 billion amidst a global demand slowdown. Imports too plunged 3.88% to $33.9 billion. The trade deficit during the month widened to $11.6 billion as against $9.17 billion in the previous year. This heavy trade deficit weakens the Indian rupee in the Forex online market. The decision by the Organisation of Arab Petroleum Exporting Countries also known as OAPEC to reduce production and the decision taken by Persian Gulf nations to double the price of crude oil led India to borrow foreign currency. India had to borrow foreign currency that lead to another reason why is the rupee falling. In spite of being one of the strongest financial countries in the world, India falls in short of effective plans that will show a difference in the country’s economic status. Foreign institutional investors (FIIs) have been in the sell-off mode in the equity segment for the past three months and sold up to Rs. 7,146 crore. On the other hand, the Domestic institutional investors (DIIs) net buying stood at Rs. 9,249 crore during the same period. Since the buying being more than the selling, the Indian rupee depreciates. If this streak of sale continues for the next few years, the value of rupee vs USD will be falling beyond measures. Reasons
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  Reasons The way theIndian economy works is very different from the U.S. economy. The gross fiscal deficit spiked from 9.0% of GDP in 1980-81 to 10.4% in 1985-86 which went on to increase up to 12.7% in 1990-91. These deficits faced by the GDP were balanced by burrowing foreign currency that led to drying of the foreign exchange reserves. Another event that led to a drop in the value of the rupee falling. The difference in interest rates The exchange rate largely depends on the inflation rate of the country. The Indian economy overall is in a state of turmoil and the inflation rate doesn’t seem to come down or stabilize thus leading to a poor exchange rate between USD and INR.The constant turmoil in the fall of the value of rupee against the US dollar, creates multiple issues in the economy of the country, making it a thing to worry about. Persistent Inflation The rising current account deficit, possibly due to the severe problems faced by the Euro Zone, is a notable reason why the Indian rupee is depreciating. The Euro Zone has been historically one of India’s major trading partners. The rising current account deficit has depleted our foreign exchange reserve and thus led to a fall in the value of the Indian Rupee. Current account deficit
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  Pros & Cons ❖Depreciationstrengthens inflationary forces ❖A depreciation of the domestic currency results in higher import costs for the country ❖Foreign Travel and Overseas Education becomes costlier ❖The interest burden would increase on foreign currency denominated debt. ❖A large and rapid devaluation may scare off international investors. ❖Sectors who export most of their products would gain from depreciating rupee ❖Prices of product made in India would be competitive with exported products ❖Improves the Trade balance ❖Travel to India gets cheaper & local industry may benefit. PROS CONS
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  Conclusion Introduction History ReasonsPros and Con All about what is Foreign Exchange, Depreciation and Appreciation How prices of INR fluctuated over the years 7 main reasons why INR is depreciating What are the benefits and disadvantages of depreciating