The Rupee (currency of India) has been falling consistently against the dollar since a few weeks (months?). Critics here and there have been blaming the government for it, but as far as I can recall, we have a dirty floating system where the Rupee varies in the limit set by the Reserve Bank of India. The cause is mostly the external shocks.
My questions are:
- Why is it falling at such a rate? How is the war impacting it?
- How much of this fall is the government's fault? What can we do to assuage this crisis, if it can be called a crisis?
- Are other similar economies also going through the same?
- Why isn't the Dollar falling (due to Trump's irrational actions)?
- What is the worst case scenario? How should we prepare for it?
- Any other useful information that I can have?
Note: Please do not comment political stuff and biases; facts would be appreciated.
How much of the fall of the Rupee is in the Government's hands v/s the Central Bank's?
byu/TheAuthorInMaking inAskEconomics
Posted by TheAuthorInMaking