Example: A currency amended on April 30th will appear on two lines of the report. Amendments made at the end of a month can be used for reporting purposes for transactions occurring during the remaining month(s) in the quarter. An amendment to a currency exchange rate for the quarter will appear on the report as a separate line with a new effective date. government can acquire foreign currencies for official expenditures as reported by disbursing officers for each post on the last business day of the month prior to the date of the published report.Īmendments: If current rates deviate from the published rates by 10% or more, Treasury will issue amendments to this quarterly report. Power Grid Corporation of India.This quarterly report reflects exchange rates at which the U.S. Share PriceĪdani Ports & Special Economic Zone. These do not represent the views of Economic Times)ĭon’t miss out on ET Prime stories! Get your daily dose of business updates on WhatsApp. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. (The author is Head of Research at Geojit Financial Services) This can happen as early as the end of 2022 or delayed to 2023, depending on the firm improvement in geo-political risk, hyperinflation, and global economic growth. This leads to selling by foreign investors, which inherently increases demand for USD and supply of other currencies, leading to depreciation.Ī reversal will be triggered when the hazardous factors are well factored in the equity market. The ongoing global uncertainties have led to a risk-off policy by global investors. Thus, USD held to be the world’s haven currency. This is due to the fact that the US economy consistently remains the biggest and most powerful economy, with the benefit of serving as the reserve currency for global commerce & investment. Today, the USD is appreciating against the rest of the world currencies despite fundamental weakness in its own domestic economy. The same will continue to affect the currency market due to plausible shifts of cross-currencies to USD. However, the ongoing volatility is expected to persist in the short term as the global economy slows in 2022-2023.
ALL WORLD CURRENCY RATES IN INDIA PATCH
This also means that INR has actually appreciated to other currencies like 10% to pound, 8% to Euro, 15% to Yen and 0.4% to Yuan, at the same time.Īs a result, we should not be concerned about the current volatility because it is due to global economic & geopolitical uncertainties.Īs we have been discussing, India is in a safe position and its currency will rebound firmly as this patch of volatility is dispersed. Their cross-currency movements are much more bizarre than INR’s.įor instance, in the past 1year, the UK Pound has depreciated by 21%, the Euro by 19%, the Japanese Yen by 29%, and the Chinese Yuan by 10% (China has a pegged policy to USD rather than a market-based). However, we should note that the world’s other best currencies have also heavily depreciated against the USD. The recent INR depreciation has surprised the market leading to 10% depreciation in a year, which is double than the normal rate of 4 to 5 per cent annually, raising questions about the strength of the Indian economy. The forex reserves have shrunk to USD 545 billion from the peak of USD 642 billion a year ago due to forex selling by RBI, high imports, and outflow from FIIs.
Exceptionally, RBI meddles in the currency market to support the INR during high volatility or during gaps in the availability of foreign currencies, which lead to a fall in forex reserves.
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