The fall in the price of money cannot be stopped. The Indian currency fell further on Monday to record lows. The dollar rose by 58 paise to reach 81.67 rupees for the first time. The dollar rose by a total of 193 paise in the last four transactions. After America increased the interest rate by 75 basis points, it released 80 and 81 rupees respectively on Thursday and Friday. Now waiting for the time to be 82 rupees, the demand of the concerned circles.
The opposition has again attacked the Modi government with this. Congress spokeswoman Supriya Shrinate explained in her Twitter video how it will increase the price increase and put the common people in trouble. At the end of the UPA period, the price was 58.62 rupees to the dollar. Sarcastically, the then opposition leader Narendra Modi’s criticism of former Prime Minister Manmohan Singh was about the rise of money. Congress alleges that the price of rupees is showing the financial weakness of the countrymen. But the Prime Minister is not paying any heed.
Financial expert Anirban Dutta says that a high dollar will increase the cost of imports and the prices of many products like medicine, edible oil, and car parts will increase in the country. Products made with imported raw materials will also be more expensive. In the end, it is the ordinary earning people who will face the problem. He fears that this may lead to reduced demand in the market, which will hurt the economy.
Ashish Nandi, a capital market expert lamented, “Although crude oil is cheap in the world market, the price of petrol and diesel in the country may not be reduced by showing the dollar. All in all, there is a risk of increasing the trade deficit.” According to Rajendra Paramanik, professor of economics at IIT Patna, the cost of studying and traveling abroad is also increasing. In this case, too, demand will decrease by damaging the economy. Some claim that small and medium industries will also be in danger due to an increase in import costs.
Fear of falling money
• Even if the price of oil falls in the world market, India will not be able to take advantage of the decline in the currency.
• Import costs of all commodities, including oil, will rise. As a result, the price may rise further.
• The trade deficit will widen as import prices are much higher than exports.
• As the Reserve Bank releases dollars in the market to save money, foreign exchange reserves are decreasing.
• Due to inflation, higher interest rates will push up the demand for loans and increase their cost.
• The company’s investment interest will decrease.
• If the investment does not increase, the work will not be created. Which will not increase the demand.
Indian Finance Minister Nirmala Sitharaman said on September 24, “If any country’s currency holds its ground against the dollar and does not fluctuate, then it is the Indian rupee.”