........When I encountered this message, my main objection was that the exchange rate of a currency is not really an indication of its strength. I am sure it is nobody's contention that India of 2013 is worse off than India of 1947. What was funny about the 1 USD = 1 INR posts was that it was justified with an argument that since India had no external borrowings, its currency was at par with the dollar. If low borrowings made up for strong currencies then North Korea might have been a front runner..............
The very purpose of VITALINFO is to provide a platform for wider dissemination of updated information related to and happening of events in and around RBI.
1 comment:
In 1947,India had surplus sterling balance which ,unfortunately, we soon frittered away. Although hints were dropped to Shri B.K.Nehru, then Under Secretary in Ministry of Finance by the Treasury of England that "If we (INDIA) shift our forex balance to US$account as we(England) may devalue its £ or words something to this effect I do not remember"(Ref Nice People finish second by B.K.Nehru). The net result was our Re weakened vis-a-viis $, currency of predominant power whreas £ was continually on decine due to ravages of war. B.K.Nehru says he was given training in ECD, RBI, Mumbai in 1940 (He was 1935 batch ICS)and he took up the matter with Finance Secretary who failed to understand anything.However, the net result was we lost considerable amount of forex reserves.
Post a Comment