This PPT talks about the depreciation between the rupee value and dollar in 2016

1. DEPRECIATION OF RUPEE
Abhishek Mohanty
Ashutosh Gupta
IMIS,BBSR

2. CURRENCY DEPRECIATION
 Currency depreciation is the loss of value of a country's
currency with respect to another country’s currency.
Let us assume 1$ = 1 Rupee
Americans own $100 and the Indians own Rs.100
If India buys or imports Rs. 5 worth of product from USA then India
would have Rs. 95 and USA would have $105
USA is 10.52% wealthier now
$ 1 = Rs. 1.10

3. CAUSES FOR RUPEE DEPRECIATION
 Dollar strength
 Widening trade deficit
 Weakness in domestic equities
 Foreign Institution Investments (FII)
 Persistent Inflation
 Fiscal deficit: (government expenditure >tax revenue)
 Growth slowdown
 Oil Prices
 High Interest Rates
 Lacking Political Will
http://profit.ndtv.com/news/cheat-sheet/article-reasons-why-the-rupee-is-sinking-every-day-326160

5. IMPACT OF RUPEE DEPRECIAITON ON
INDIAN ECONOMY
 Inflation graph and Fiscal deficit to scale up
 Imported goods
 Impact on Oil Imports
 Impact on Companies Balance Sheet
 Impact on Companies foreign debt
 Prices of Cars, Electronic gadgets and home appliances will go
up
 Impact on Indian students and travellers abroad
 NPA (Non-Performing Assets)
 Stock Markets and FIIs
 Impact on Common man

6. SOLUTIONS TO STOP FALL OF
RUPEE:

7.  Exporters Should Buy Rupees
Moral Influence
Delay Import Payments
To Provide Oil Bonds
Review limits for foreign investment
 Sovereign Bonds to NRIs
Sovereign Overseas Bonds
Tightening Gold Imports


8. CONCLUSION
 The major reasons for rupee depreciation are slow economic growth rate,
weakening capital inflows and widening current account deficit
 Rupee depreciation will benefit the Export oriented IT sector only in the short –
run.
 Indian Energy sector that is hugely dependent on Imports are hit very badly by
weakening of rupee against USD
 To stabilize the currency exchange rate The RBI has reduced the limit
for outbound investment and remittances from India , Restricts the import of gold
and oil by increasing the import duty, have increased the limit of FDI Investments
in 12sectors and enhanced FII limits in government and corporate bonds
 http://www.thehindu.com/business/markets/govt-rbi-taking-steps-to-stabilise-
rupee/article4995540.ece

9. THANK
YOU