Stay connected and informed with Mint. Download our App Now!! It'll just take a moment. Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image. But there is a problem this time around. The RBI wants to ensure that there is a glut of rupees in the system so that the government can continue borrowing at lower interest rates.
There are news reports that suggest the RBI is intervening in the foreign exchange market to attest to the fall of the rupee, but as mentioned earlier, its ability to do remains limited. A carry trade involves borrowing money in a currency in which interest rates are very low as is the case with much of the rich world currently and investing it in a currency where interest rates are on the higher side like the rupee.
The thing that can jinx this trade is the depreciation of the currency in which money is invested. As the currency in which money has been invested loses value, the total amount of money that an investor makes in the currency he has borrowed goes down. To avoid this possibility, investors unwind the carry trade. In the current context, this would mean selling rupees and buying dollars, leading to a further depreciation of the rupee.
News reports suggest that this is currently on. As happened last year, when the pandemic spread, imports collapsed faster than exports. Something like that might happen in the months to come if covid keeps spreading. This will mean lower demand for the dollar to pay for imports, putting rupee lesser pressure on the rupee in the downward direction. Never miss a story! Stay connected and informed with Mint. Download our App Now!! Disclaimer: Comments will be moderated by Jagranjosh editorial team.
Comments that are abusive, personal, incendiary or irrelevant will not be published. Please use a genuine email ID and provide your name, to avoid rejection. What is the cost of printing , and rupees notes in India?
In its annual report, the Reserve Bank has stated that the cost of printing a note of rupees is Rs. New Currency Notes in India. This website uses cookie or similar technologies, to enhance your browsing experience and provide personalised recommendations.
By continuing to use our website, you agree to our Privacy Policy and Cookie Policy. Select basic ads. Create a personalised ads profile. Select personalised ads. Apply market research to generate audience insights. Measure content performance. Develop and improve products. List of Partners vendors. Before , the government of India had the responsibility of printing money. Although the RBI has the power to print Indian currency , the government still has the final say on a majority of the Reserve Bank's actions.
For example, the government decides which denominations are printed and the design of the banknotes , including the security features. In addition, when the Reserve Bank estimates the demand for banknotes each year, it must file a written request that government officials must sign off on before printing.
When making these final decisions, government officials rely heavily on advice from the Reserve Bank senior staff. It's worth noting that in a surprise move on November 8, , the Indian government announced it would be withdrawing and 1, rupee notes from circulation to help curb counterfeiting and corruption.
As a replacement, new and 2, denomination rupee notes have been issued. The following denominations are now in circulation: 5, 10, 20, 50,, , and rupee notes, along with the following coins: the 50 paise, and 1, 2, 5, and 10 rupees.
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