Economic crisis in India 2013 | ALL Updates & News

[Marxist]

Deficit will increase With the FSB ,so prepare for the worst .....Congress is destroying this country

 

[AADHAAR]

Well free floating isn't really helping us, is it?

It is actually ... and its great that we are not like 1991, before when INR was a pegged currency.

INR now responds to market ... and that's an autocheck.

Ditto for BRL, IDR, AUD, RUB, ZAR.

I don't how to post the charts like CD did above.. but go to finance.google.com and compare USDINR, USDBRL, USDRUB, USDIDR, USDZAR and they all move in tandem.

And the good thing is that as the "hot money" leave india, those who withdraw need to surrender more INR that what they got.

And exporters and NRI earn great value ... encourages exports and remittances.

Handicrafts exports grow 10% in July - The Times of India

Falling rupee, rising UK and the United States cheer Indian exporters - Economic Times

India Aug diesel exports seen at 2.4mn T

India July Exports Rise as Weak Rupee Helps - WSJ.com

Indian optical fiber exports face dumping charges in China - Economic Times

India : Indian July MMF product exports rise 15.9% over June - Textile News India

India's July exports up 11.6% y/y: govt

http://in.reuters.com/article/2013/08/16/india-forex-reserves-idINDEE97F07F20130816

 

[Indo-guy]

This is what i have been saying about India for sometime here. The hot money inflows that in the past has helped India to fund its persistent and growing current account deficits is now leaving the country. And the raft of measures introduced by the RBI and the Indian government in recent times looks more like panic rather then really tackling the countries problems. And the result is that capital is leaving India at a accelerated pace. India currently is burning through its forex reserves to defend its currency. India may soon face a crisis like that of ASEAN in the 1990's.



As Indian rupee hits record low, foreign investors baulk | Reuters

Rupee devaluation is nothing surprising and is multifactorial phenomenon ( like most economic-finanacial phenomenon )

Rupee devaluation is partly course correction....Rupee had remained stable for one full , last decade . Nothing surprising that it is dropping with first cue of instability

Part of the rupee devaluation as you said is due to fleeing foreign funds towards better investment scenario ....as US ecomony has kickstarted .....This is what happens when you depend completely on Foreign investment ...

Part of the devaluation is because mismanagement of Economy by our great economist PM .

Fiscal measures of keeping your belt tight of previous goverments was revoked by this stupid PM ....when you outspend your earnings ...you are bound to find yourself in neck deep debts

Under pressure from stupid - populist measures of Sonial led NAC , MMS although reluctantly embraced money gobbling schemes like MNREGA , Loan waiver ....this is partly result of that

 

[Tshering22]

It is actually ... and its great that we are not like 1991, before when INR was a pegged currency.

INR now responds to market ... and that's an autocheck.

Ditto for BRL, IDR, AUD, RUB, ZAR.

I don't how to post the charts like CD did above.. but go to finance.google.com and compare USDINR, USDBRL, USDRUB, USDIDR, USDZAR and they all move in tandem.

And the good thing is that as the "hot money" leave india, those who withdraw need to surrender more INR that what they got.

And exporters and NRI earn great value ... encourages exports and remittances.

Handicrafts exports grow 10% in July - The Times of India

Falling rupee, rising UK and the United States cheer Indian exporters - Economic Times

India Aug diesel exports seen at 2.4mn T

India July Exports Rise as Weak Rupee Helps - WSJ.com

Indian optical fiber exports face dumping charges in China - Economic Times

India : Indian July MMF product exports rise 15.9% over June - Textile News India

India's July exports up 11.6% y/y: govt

Thanks man.

But I was asking about those of us living in India.

For example, I work at NAT GEO. This requires me to travel international like almost 85-90% of the year around the globe.

Though most travels are funded by the channel, the in travels of those sites come as reimbursements. Which means that the dollars that I carry with me internationally are converted from my earnings in Rupees. Which puts a constraint on me until I get my money back.

Or even imagine a middle class family wanting to go to their international vacation. The dollar conversions would be costlier while the dollar to the other country's currency might not have so much difference. Like in Russia, the USD-RR is not so much vs the USD-INR difference.

 

[AADHAAR]

Thanks man.

But I was asking about those of us living in India.

For example, I work at NAT GEO. This requires me to travel international like almost 85-90% of the year around the globe.

Though most travels are funded by the channel, the in travels of those sites come as reimbursements. Which means that the dollars that I carry with me internationally are converted from my earnings in Rupees. Which puts a constraint on me until I get my money back.

Or even imagine a middle class family wanting to go to their international vacation. The dollar conversions would be costlier while the dollar to the other country's currency might not have so much difference. Like in Russia, the USD-RR is not so much vs the USD-INR difference.

Well, you would say exactly the same thing if you were in Brazil, South Africa, Indonesia, Australia, or Russia.

Salaries rise in India.. say, about 10% a year. isn't it? (I work outside India, as of now).

It's essentially flat in Singapore. (approximately 0%, unless you got a promotion).

But even SGD has changed rom 1.21 to USD, to 1.27... should I say, that I am at a loss if I travel to US?

Or should I demand that my SGD salary be increased, to atleast keep my "USD" equivalent same ??

 

[Indo-guy]

Chinese Yuan is at a record high. Great news.



Read the article cirr posted above, from the Wall Street Journal.

The Chinese Yuan is at a record high against the USD. And at the same time, the Indian Rupee is at a record low against the USD.

Just use your brain and think about it. They can't devalue the dollar against only one currency, if they devalue it will devalue against all currencies.

Thank God ! You are not chief economist of China ...or else you would have had destroyed Chinese economy with your such down to earth, simplistic thoughts ...

 

[AADHAAR]

China is a pegged currency ... and see the effects:

1. They need to pare down their USD holding to keep the CNY "peg"

China, Japan lead record outflow from Treasuries in June | Reuters

2. They need to keep all the capital controls, which are must to maintain the "peg".. just like India had to, prior to 1991.
This is inefficient, economically .. and risks currency jumps.

 

[Chinese-Dragon]

China is a pegged currency ... and see the effects:

1. They need to pare down their USD holding to keep the CNY "peg"

China, Japan lead record outflow from Treasuries in June | Reuters

2. They need to keep all the capital controls, which are must to maintain the "peg".. just like India had to, prior to 1991.
This is inefficient, economically .. and risks currency jumps.

Did you even read the article you posted?

It does not use the word "peg", not even once.

Clearly you do not know what a currency peg is.

Read it:

Fixed exchange rate - Wikipedia, the free encyclopedia

China has not used a currency "peg" since 2005. Obviously, since the Chinese Yuan is rising against the USD.

 

[Indo-guy]

Thank God ! You are not chief economist of China ...or else you would have had destroyed Chinese economy with your such down to earth, simplistic thoughts ...

Yuan is on high ...it has its own reasons ...and Rupee is low ..has its own set of reasons

How high is the currency against US dollar is not the measure of success of an economy .

Some of the badly performing economies have got their currency high against dollar ... what does that mean ?

You need to clear your economics basics first ...

Chinese economy is doing well ..is good news for not only China but also India and Us and whole world .... Afterall if Chinese economy stagnates we all will suffer

Similarly Don't rejoice about downturn in Indian economy ..we all live in connected world ...and are affected by each other ...quantum of which can vary based on our relative strengths ...but we will be affected by each other sure ...

 

[AADHAAR]

Did you even read the article you posted?

It does not use the word "peg", not even once.

Clearly you do not know what a currency peg is.

Read it:

Fixed exchange rate - Wikipedia, the free encyclopedia

China has not used a currency "peg" since 2005. Obviously, since the Chinese Yuan is rising against the USD.

I work in a bank.. and work close to FX options (financial derivatives).

Go.. find the volatility of USDCNY ... which is central to option pricing.

Then, you'll realize what a currency peg is ... and how banks risk manage options on pegged currencies.

Ahh.. but your IQ will limit your understanding of currency options... sorry mate.

 

[Chinese-Dragon]

I work in a bank.. and work close to FX options (financial derivatives).

Go.. find the volatility of USDCNY ... which is central to option pricing.

Then, you'll realize what a currency peg ... and how bank risk manage options on pegged currencies.

Ahh.. but your IQ will limit your understanding of currency options... sorry mate.

You still don't know what a pegged currency is?

I gave you a link to the encyclopedia definition.

Go and read it.

Fixed exchange rate - Wikipedia, the free encyclopedia

People like you make me believe the stats that show Indians have an average IQ of 82. I mean seriously, I gave you a link to the definition already.

 

[AADHAAR]

You still don't know what a pegged currency is?

I gave you a link to the encyclopedia definition.

Go and read it.

My employer thinks otherwise.

 

[Chinese-Dragon]

My employer thinks otherwise.

What a joke.

China does not have a pegged exchange rate, we got rid of it back in 2005.

Go and check it yourself, since you clearly have no idea what a pegged exchange rate even is.

I don't know if you are just being stupid on purpose or what? You claim to work in a Bank?

 

[AADHAAR]

Anyway, more goodies (or atleast auto-correction mechanism at work) from a free market .... :

Falling rupee brings cheer to domestic travel circuit | Business Standard

Demand for domestic hotels rises as trips abroad get dearer due to rupee fall - The Economic Times

http://voyagersworld.in/article/domestic-travel-1987-2012

 

[Chinese-Dragon]

Anyway, more goodies (or atleast auto-correction mechanism at work) from a free market .... :

You can find so many links, but you can't even find one link to show that China got rid of the pegged exchange rate back in 2005?

If you think the Chinese Yuan is still a pegged currency today, then go find a link to prove it.

Or maybe you can finally learn what a pegged currency means, finally.