Currency Appreciation & Depreciation - How it Affects the Economy | Economics

In this video we will learn what is Rupee appreciation and depreciation. It is also referred to as currency devaluation and revaluation. You must have read it in the newspaper that rupee has become stronger or weaker or crashed or gained some points against the American dollar. All of this simply means that the value of rupee has either increased or decreased against the American Dollar. This topic is part of Macroeconomics. Currency Appreciation & Depreciation has a huge affect on a nation's economy. It drives Foreign Direct Investment FDI, increases foreign reserves and it also affects a country's import and export.

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[amitsengupta]

The part where I said "GST reduced the money supply in the economy". Actually I meant demonetization and not GST. Apologies for the glitch. If you did catch the mistake, you are on a right track!

[nevilnevs]

@ 3:50
1$ = 63.81 rupees and 1$ = 63.51 rupees
Foreigner get more rupees per dollar when
1$ = 63.81 and not @ 63.51

[another]

It's so amazing that how could one man can explain the concepts Economics, History, Geography and Geopolitics very well and in a very subtle way. Thank you Amit Sir!

[CRAAZY_FAMILY]

Sir u mentioned that investors will invest when value of india rupee decreases!! So that they will get more rupee in fewer dollar but 1dollar= 63.81>>> 1dollar=63.51
So a foreign investor will be benefitial in 63.81 but why u mentioned 63.51

[rgarg]

Sir, You work very hard before making any Video....full research...How to present...What mistakes others do that can be corrected....and also taking care of making it interesting not Sir...I appreciate...

[simeondias]

Excellent.! I understood more in this 11 minute video than I have for a whole semester in college.

[saggyb]

Nice explaination,
But same question amit ji,
Import - export things are understood well, but
Why will a foreigner invest when rupee appreciates ( at 3:45 )

Please explain, even many of your viewers have asked the same question and not being answered yet.

Hope u will reply soon .😊

Thanks

[SDD]

I didnot understand how FDI would increase as rupee appreciates? Would not they (investors) have to pay more dollars to purchase rupee, making it expensive for them to invest? Please Explain.

[GururajBN]

You never cease to amaze me. You write about science, technology, geopolitics, money market, geography, weapons systems, what else? 👌 You are a source of inspiration for people to seek knowledge, not just information.

[narendranaik]

sir there is one more glitch i guess, or i may be wrong also.please check around 3:45sec to 3:50sec.please let me know

[tangadabu]

There are various factors which lead to fluctuation of rupee's value against the dollar. And this entire video was mainly focused on one factor I.e FDI&Fll. However, the explanation was very precise even though it has covered the single aspect of currency fluctuations.

[sakthikumar]

None can teach more effectively than this. Thanks a lot! :) Yes, it was indeed informative :)

[raiarslan]

The master piece of economics Fundamentals is this Video.Hats off to u Sir

[onarshquest]

2:56 Foreign Importers
4:20 We can export more
By the way, I'm so thankful to you🙏🙂👍

[nanu]

Your videos never disappoint me sir..your teaching skills are incredible😊

[harpreetsingh-xjeb]

Your lectures are amazing, thanks a ton sir, God bless you
Keep on coming with new lectures especially in economics ....
Once again thanks a lot sir

[monstarioyt]

3:53 you said that the foreigner would buy $1 = 63.51 while if it buys for $1 = 63.81 then he would be able to spend more
Please reply

[vijekrishnan]

Hello sir, I have a doubt on how rupee appreciation helps to improve FDI. That means rupee value is less so they have to spend more dollars to get more Indian rupee. Clarify that part.

[rgarg]

Sir If possible... Please make some videos on Geography in Detail according to UPSC Syllabus mentioned in Optionals like Oceanography, Geomorphology, Climatology, Models & Theories

[omkarsahu]

Too much information in one go but is good as you touched almost every aspect of rupee appreciation and depreciation. One has to look multiple numbers of times to understand the minute details.