Posted byHardik Vats October 17, 2018 October 29, 2018 Posted inBusiness Leave a comment on Indian Rupee: No rise, only fall. Is the government doing enough?
1.1 Why is the Rupee falling?
In case no one noticed, Stock markets in India have been painted red with the incessant bleeding of the Indian Rupee. Latest figures show the Rupee plummeting to new lows every hour with the latest being at Rs. 72.97 for 1 dollar, the Indian currency has been labelled the worst performing of all Asian countries.
Gas prices have been skyrocketing with 82 Rs. for 1 liter of gasoline which has also contributed to the near ‘crash ‘ that the currency is facing. We didn’t even notice the subtle fall since late July and now that everything that could go wrong is going wrong at once it almost feels the economy has been set on fire.
The issues have also turned political in addition to economic stress with opposition seeing it is like a weakness to be exploited for ousting the current Modi administration. In the time that government begins to comprehend and pinpoint what it is that is going wrong, the country including its citizens, Companies, Stock owners suffer with investors losing over 2.72 trillion rupees. Put that in crores the amount comes out to be ₹2,72,549.15 CRORE which is not a small amount by any means.
Masala Bonds rules have been relaxed to ease the process of raising overseas debt in rupees rather than any other currency.
Before we jump to unrealistic conclusions and start pointing fingers at the government for not doing enough let’s take a birds-eye view on the matter. Indians in their day to day to life are suffering and that needs to stop first and foremost.
We have seen that the government is opening up and relaxing many stringent laws and restrictions in a pursuit to free the currency from its somewhat dramatic fall. Even after so many efforts if the rupee is still looking down, maybe we need to point fingers elsewhere.
Many of the reasons for the devaluation of the rupee can be attributed to external factors and how the government of the United States plans to continue their business and policy dealings. There is no need to panic and be out with the calculators just yet, like everything this just needs time to stabilize and we’re sure that the government will weather this storm soon enough.