If One Rupee Equals To One Dollar
Unbelievable. Wild Dream. Maybe you won’t believe your eyes (or ears if you hear that news). Someone has to pinch your thigh to come back to your senses! For you might desperately be wanting that magical device – iPhone – if one Rupee equals to one Dollar.
Before the Indian Independence or so, the exchange rates of the US Dollar and Indian Rupee were equal despite the reason that India was at the threshold of economic development. As the imports grew more and more, the Rupee depreciated against the international currency.
Almost half a century later, that is 1991-92, India faced a Balance of Payments crisis which was due to lack of forex reserves in the US Dollars. Though the Indian economy galloping at an unprecedented rate, the exchange rate of Rupee against the international currency has been growing as well.
So will our major economic problems be solved if one Rupee equals to one Dollar? Maybe or may not be – to speak as Shakespeare did.
Even if it is so, India may have to maintain a certain amount of forex for international trade. For when it comes to international trade, the Dollar established itself as the standard currency of trade transaction. Although there are other currencies such as Euro, Sterling Pound, Dinar and as such, which are higher in value than the US Dollar.
Apparently, the US wields its influence internationally for the reasons known to the readers.
Surprisingly, Apple goods and US education will no longer expensive. But there are other areas that are hit hard; software exports and those seeking the jobs in the States. For Indian diaspora (population-wise) is the second in position after China’s.
Considering that way the benefit will be minimum against the cost of huge losses in the form of jobs and exports. Therefore, if one Rupee equals to one Dollar India will only lose much more than benefiting from the same.