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Indian Currency

Indian Currency

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Published by Sameer Yadav

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Published by: Sameer Yadav on Jul 03, 2012
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Indian Currency Code : Devanagari : Controlled by : Subunit : Symbol : INR रुपया Reserve Bank of India Paisa ₹

Indian rupee sign

Origin
Presented to the public by the Government of India on 15 July 2010. On 5 March 2009, the Indian government announced a contest to create a sign for the Indian rupee. Five signs had been short-listed from around 3331 responses received and one of them was selected at the Union Council of Ministers of India meeting held on 24 June 2010.

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Design
The design of the sign is a combination of the Devanagari letter "र" (ra) and the Latin capital letter "R". The parallel lines at the top (with white space between them) are said to make an allusion to the tricolor Indian flag. The final selected symbol was designed by D Udaya Kumar, a B.Arch and student of visual communication at the Industrial Design Centre, IIT Bombay.

Exchange Rate

In finance, an exchange rate (also known as the foreign-exchange rate, forex rate or FX rate) between two currencies is the rate at which one currency will be exchanged for another.

It is also regarded as the value of one country’s currency in terms of another currency.

How currency value is decided?

There are many economic factors, which decide the value of a currency. A currency will tend to become more valuable when its demand is higher than supply. It is the basic theory. When one USD can buy 45 rupees today and 52 rupees tomorrow, it means that the value of the rupee has depreciated.

The main reasons for depreciation of Indian rupee now

Stock market performance Inflation Current account deficit Corruption and Political paralysis

Why and how RBI control exchange rate?

RBI will interfere in this area because a steady value of rupee is essential for the orderly growth of the economy. A depreciating rupee will harm import oriented businesses and may help the exporters, who get their payment in dollars. RBI will be watching the position and interfere to stabilize the currency value. In case of depreciation, RBI will sell foreign currency from the reserve and this will help in arresting the fall of rupee to some extent.

What way rupee depreciation will affect you?

Products that are directly imported, such as crude oil, fertilizers, pharmacy products, Computers and laptops, become more expensive following rupee depreciation. Depreciating rupee is bad for companies that import things and good for companies that are export oriented. If you are working abroad and is earning in dollars, you will get more rupees for the same dollar. So this is good for those, who are earning in dollars. Currently, there is rush from NRIs to send money to India now to take advantage. If you are studying overseas, your cost will be more, because you have to pay more rupees to get the dollar.

If someone is planning for a foreign vacation, it will cost him more now.
But we can expect lot of foreign tourists to India, because, their travel cost have come down with a depreciating rupee!

Currency Comparison
Indian Rupee values against other currencies as on Friday, February 10, 2012
1 INR American Dollar British Pound Chinese Yuan Euro Nepalese Rupee Pakistan Rupee Russian Ruble Sri Lanka Rupee 0.0202062 0.0128125 0.12718 0.0153205 1.59528 1.8332 0.607836 2.31988 In INR 49.4897 78.0485 7.86286 65.2719 0.626849 0.545494 1.64518 0.431057

Movement of Indian Currency against USD from 1990 to 2011

How much to print ?
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Incremental needs Replacement needs Reserve Needs Statistical analysis and long-term forecast

150 Rupees Coin for Income Tax department’s 150th year

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