Do u know why Indian currency value is reducing?
December 18, 2008 5:27am CST
Friends can u please quote the reasons and suggestions to improve Indian rupee value.
25 Dec 08
In order to make rupee stronger, RBI has to intervene. It can play a greater role to strengthen rupee. The reason for weak rupee is the increase in liquidity in the market. As you know that in order to control inflation RBI took steps that increased liquidity in the market by lowering interest rates. What RBI can do now is to sell government bonds. That will reduce the liquidity. In addition RBI can sell dollars from its foreign reserves. That will also push the rupee upwards. if you want information related to economic issues, feel free to post.