What can be done to stop Rupee's fall against Dollar?
The Rupee is losing its value against the dollar. We are now looking at 59 Rs to a Dollar.
Previously, we discussed Why the Indian Rupee is falling against the dollar?
What can be done to stop this slide? Here are a few things that the Government and the RBI can do:
1. RBI can ask exporters to convert their Dollars into Rupees. In other words, it can ask the exporters to buy Rupees.
2. RBI can talk to financial institutions and banks to raise money abroad in foreign currency and then lend it in India.
3. The Government can increase the limit on foreign investment in government and corporate debt.
4. The Government can do some reforms and allow FDI in sectors where it was limited earlier.
5. The Government can issue bonds abroad
All these measures can provide some short term relief to the Rupee. It will hold its value in the short-term.
In the lon term, there is no solution other than to make our economy stronger.
It will take time for us to boost our exports. Our industry is not very competitive globally. We need more investments.
Our economic growth is slowing down. A few years back we were looking at achieving 10% growth and now we are looking at how not to let it fall below 5%.
Lets wait and see how the gloab economy and our policies shape up the Dollar Rupee equation.
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- What can be done to stop Rupee's fall against Dollar?