Dollar VS Rupees: How to determine the value of rupees against dollars, know the complete calculation
Dollar VS Rupees: Every day we hear in the news that the price of rupee has gone up or down against the dollar. Different rupees are valued against each country's money. Then, how much the rupee rises against the dollar, we calculate how many rupees equal to 1 dollar in the country where the dollar is running. Now let's see how this is determined when the price of Dollar VS Rupees has changed recently.Dollar VS Rupees.png)
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It was not so expensive before
First of all, know that the value of rupee against 1 dollar is already not so much. There was also a time when 1 dollar was equal to 3.3 rupees. Although this happened in 1947, but in 1985, the price of 1 dollar VS rupee reached the level of 12.38 rupees. It reached 34.42 in 1995 and continued to climb.Who sets the price?
Now let us answer your questions that who ultimately decides the value of rupee against dollar? These questions are straightforward and simple. That this price is not fixed by any person. But the fluctuations in the market, the country's foreign currency fund, the country's economy and other issues have an impact on the price of the rupee. In simple words, the value of rupee depends on its buying and selling ie if the demand of rupee is high then its value will be higher as compared to dollar. But if the demand of rupee is less then its value will be lower compared to dollar.This is how the price is determined
If you are traveling abroad then you have to exchange rupees for that currency. Similarly, if an Indian company starts business in another country, they have to work there in dollars. That means they have to exchange rupees for dollars. If a company comes to do business in India then they have to make all investment, employee salary here in rupees. That means they have to convert dollars into rupees. In this way, how much is the transaction with dollar or other currency rupees. How many rupees are converted to how many dollars. It affects the value of the rupee against the dollar.Procedure of Reserve Bank
To facilitate the whole process, banks keep foreign currency reserves with them, so they can exchange currencies to anyone. But the Reserve Bank decides how much foreign currency a bank will keep. So that the economy is not affected. Generally speaking, imports of goods from abroad, Indians traveling abroad, or demand for Indian goods abroad have a direct impact on the rupee against the dollar.jigarpajapati.blogspot.com here: Exam Notification, Exam Date, Exam Fees, Syllabus, Online Application Process, Exam Preparation Tips, Exam Study Material (General Knowledge-GK, Current Affairs , Gujarati and English Grammar, Mathematical Reasoning so Daily visit my site jigarpajapati.blogspot.com. jigarpajapati.blogspot.com is All in one Education information website, like primary Education paripatra & GR, std 1 to 8 all material, textbook, adhyayan nishpattio, Teachers Edition, Timetable, sce patrako, xamtao, pragna material all information so Daily visit This Site jigarpajapati.blogspot.com for More Updates
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