Rupee in free fall: Can it be saved? Should it be saved? Or is it time to give up?

The Indian rupee has sunk to record lows even as India reports a sharp drop in reserves and RBI's forex intervention has caused a massive shortage of rupees in the domestic market. In this 67th episode of @thebondeconomist, we figure out why the rupee is falling, should it fall more, how has the RBI been artificially supporting it, what are the consequences of manipulating the rupee, and have the Government and RBI decided that it's time to let go.

Related videos:

#rupee #currency #indianeconomy #economy #currentaffairs #forex #indianrupee #dollar #rbi #modi #modigovernment

My channel in a nutshell:
@thebondeconomist aims to give a running commentary of what's going on with the Indian and global economy, broken down in simple terms for the general public to understand. Economics is a bit like antibiotics - you need to know what you're swallowing. There is currently a big gap between the economic analysis done for financial markets, and what's available for the general public. And this space typically gets filled either by shrill pro or anti-establishment commentators or by finfluencers. @thebondeconomist is here to bridge that information asymmetry. It aims is to explain the nuts and bolts of how economics unfolds in real life, translate how financial markets are processing economic news, and events in real time, and the right questions that you need to ask.

Stripped of jargon, stripped of political bias, and served with a touch of irreverence.

My credentials:
I am an investment bank economist with nearly a decade and a half of experience tracking the Indian economy. I have a PhD in Economics from the Delhi School of Economics and two Masters' degrees - one from the London School of Economics (MSc Finance and Economics) and the other from the Delhi School of Economics (MA Economics).

Find me:

Chapters:
0:00 Rupee at record low, but still overvalued
3:55 Why is the rupee falling: Dollar strength
6:19 Why is the rupee falling: India's economic problems
9:24 How India has been manipulating the rupee
11:50 Time to stop trying to control the rupee?
14:35 Is the RBI letting go of the rupee?

Data sources: RBI, PIB, MOSPI, XE, The Economic Times, Business Standard, Mint, Moneycontrol, CNBC-TV18 and other similar media outlets.

Music: Inshorts and YouTube Audio Library

Note: The information provided in this presentation are my personal views and should not be construed as the views or advice of my employer. My employer is not responsible in any manner and does not assume any liability or responsibility on your reliance with respect to the information stated here.

[parisiennemoonlight]

Juhi Chawla couldn't muster any guts to speak up after 2014.

[cryvell]

Rupee is falling becoz of our weak economy thanks to out leadership with no practical thinking and high taxes

[rselvarajanMBA]

This is flawed logic being perpetrated by the government. The RBI is spending $40 billion EVERY month to prop up the Rupee 💀 Take that into account too!

[aamindanggen]

This govt is the worst govt of Independent india

[leopardtiger]

Rupee is finished bjp rule has done this great economic magic.

[madhouse]

Modi's step brother teaches economics kudos 😂😂😂😂😂

[Down_with_Plutocrats]

India is going down hill with a terrifying momentum. Not just the stock market or the Rupee, but everywhere I see. Even the commercial disputes in Patiala House Courts are not being decided. Orders are not being passed unless you Grease the Judiciary.
Who in his right mind will invest in a Banana Republic like India.

[adarshsaraf]

underrated channel needs to reach the mainstream audience

[johnnydoe]

What Middle Class ?

Current Government has wiped out
the Indian Middle Class with GST. 🤣🤣

[satishshinde]

There has been too much interference by RBI trying to hold rupee value stable against dollar by selling massive amounts of foreign reserves. This offcourse cannot continue forever. Once that stops b ready for 1$ = 100 Rupee

[StartNight-dfsv]

10 years of hard work to reach here. Still we will go ahead...
We need your cooperation more and more by paying more taxes. Then only we will make our rupees to reach 200 per dollar. Others are jealous on our growth. What to do...
As per mathematics we are ahead.
1 < 85

[tagorebabu]

That's the trend with saffron tax mafia...

[EmperorAmar]

Finally someone made this video, since RBI is constantly trying to stop the devaluation of the rupee, exports have come down. Since our merchandise is overvalued than other countries. Just for reference when rupee devalue as per market forces exporters book the dollars for the business and export the merchandise which in turn brings dollars and makes rupee strong again, but the last 2 years rupee is kept strong by releasing our reserves, there by keeping our exports un competitive in the international market.

[dhruvramansingh]

Other developing economies like Vietnam and Indonesia artificially keep exchange rate lower while we keep it artificially high because in Indian public's mind strong= good weak= bad even when it comes to exchange rate management.

[lourdumary]

BJP might still say that Rupee is not weakening. It is just tha Dollar is growing strong.

[MrPoornakumar]

This government failed (& is failing) miserably in Economy. It has simply, no clue. They seem to be filling it up with monetary quick-fixes that makes the situation worse. Their imbecility is inability to address the unemployment front. Unless more earners are added to the Economy, how can one hike up demand & increase production? The usual lament about Chinese imports is already there and doesn't seem to go - it is the elephant in the room. Simply put, Indian manufactured goods are thought so shoddy that none is prepared to buy!

[arbulusu]

The INR is competing with someone's age: who will reach a century first? INR or that someone's age?! 😜

[ronojoysen]

No problem. Spend another 500 lakh crore on another useless statue.

[adas]

In case you are a bengali, would earnestly request few videos in bengali on economics and finance as there is a serious dearth of quality videos in bengali

[IronMan-nurb]

I read a post in Twitter last year...i forgot the author name...he said...the fair value of INR compared to USD is around 110-120. Indian govt is holding current price artificially.

Is it True?