Currency Appreciation & Depreciation - How it Affects the Economy

Currency Appreciation & Depreciation - How it Affects the Economy | Economics

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6 жыл бұрын

In this video we will learn what is Rupee appreciation and depreciation. It is also referred to as currency devaluation and revaluation. You must have read it in the newspaper that rupee has become stronger or weaker or crashed or gained some points against the American dollar. All of this simply means that the value of rupee has either increased or decreased against the American Dollar. This topic is part of Macroeconomics. Currency Appreciation & Depreciation has a huge affect on a nation's economy. It drives Foreign Direct Investment FDI, increases foreign reserves and it also affects a country's import and export.
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Пікірлер: 310

@amitsengupta01 6 жыл бұрын

The part where I said "GST reduced the money supply in the economy". Actually I meant demonetization and not GST. Apologies for the glitch. If you did catch the mistake, you are on a right track!

@rgarg303 6 жыл бұрын

Sir please complete 11 class geography ncert remaining chapters soon...

@yogarajat1136 6 жыл бұрын

Thank you for the clarification.

@sodiumchloride7472 6 жыл бұрын

Yes I caught 🤗

@suryanarayansahu2987 4 жыл бұрын

Yess sir, That's why I was replaying that GST term in that video again and again.😛😛.. Thank you sir...

@goodluckyadav630 4 жыл бұрын

But again who are going to investment in #FDI every foreign customer invest in #FII as per government data?....what happened in this situation?

@nevilnevs 5 жыл бұрын

@ 3:50 1$ = 63.81 rupees and 1$ = 63.51 rupees Foreigner get more rupees per dollar when 1$ = 63.81 and not @ 63.51

@tejailla7431 3 жыл бұрын

Yeah...There is a mistake in that!!!

@divyanshsingh308 3 жыл бұрын

Exactly

@DurgaPrasad-fo9iu 3 жыл бұрын

This point confuse and disturb whole.video

@barshavalentine8687 3 жыл бұрын

Thanks dear....this particular point was distrbng me a lot until I read yr comment

@BlueCitySmiles 3 жыл бұрын

Yup!

@another8230 Жыл бұрын

It's so amazing that how could one man can explain the concepts Economics, History, Geography and Geopolitics very well and in a very subtle way. Thank you Amit Sir!

@simeondias966 5 жыл бұрын

Excellent.! I understood more in this 11 minute video than I have for a whole semester in college.

@vladimirmodi41 2 жыл бұрын

😁😆

@sakthikumar7475 6 жыл бұрын

None can teach more effectively than this. Thanks a lot! :) Yes, it was indeed informative :)

@rgarg303 6 жыл бұрын

Sir, You work very hard before making any Video....full research...How to present...What mistakes others do that can be corrected....and also taking care of making it interesting not boring.......Amazing Sir...I appreciate...

@GururajBN 2 жыл бұрын

You never cease to amaze me. You write about science, technology, geopolitics, money market, geography, weapons systems, what else? 👌 You are a source of inspiration for people to seek knowledge, not just information.

@raiarslan8333 2 жыл бұрын

The master piece of economics Fundamentals is this Video.Hats off to u Sir

@CIVILSERVANTEAST 2 жыл бұрын

Sir u mentioned that investors will invest when value of india rupee decreases!! So that they will get more rupee in fewer dollar but 1dollar= 63.81>>> 1dollar=63.51 So a foreign investor will be benefitial in 63.81 but why u mentioned 63.51

@suraiaakter7810 6 ай бұрын

that is also my qustion here

@abdullahayaseshan 5 ай бұрын

Let's understand it this way, if the foreigner wants to invest 1000 dollar in any asset in India, he will hold 1000/60.81 = 16.44 rupee worth of indian asset in 1 dollar = 6.81 rupee rate but when the value is less with same amount meaning at 1000 dollar it would be 1000/60.51 = 16.53 rupee worth of indian asset ... So ultimately he is holding more valued asset in indian rupee at the low value of rupee per dollar or more stronger rupee position. That's why he is willing to invest and can turn this investment in greater return in future. Remember 60.81/1(Rupee/USD) is the rate...

@tangadabu1532 3 жыл бұрын

There are various factors which lead to fluctuation of rupee's value against the dollar. And this entire video was mainly focused on one factor I.e FDI&Fll. However, the explanation was very precise even though it has covered the single aspect of currency fluctuations.

@Shwerinks1627 6 жыл бұрын

One of the best explanation I have ever heard sir.... Your way of presentation makes the entire content to get stored in my brain without efforts.... Thank you... Looking forward for more videos..

@harpreetsingh-xj2eb 4 жыл бұрын

Your lectures are amazing ,thanks a ton sir, God bless you Keep on coming with new lectures especially in economics .... Once again thanks a lot sir

@jadhavaarthi571 6 жыл бұрын

thank you very much sir,you're my best teacher that everything you teach is comprehensive and practical

@divyasharma-ib7tz 3 жыл бұрын

Thank you so very much! For explaining this in a such a easy manner. 🌻

@amarmithare540 6 жыл бұрын

I just the love way you explain sir it's amazing very informative..

@srin6977 3 жыл бұрын

The best video i have ever seen.. the last 2 minute you did great job.Keep doing more macro economics videos.

@AkshatAnandsangfroid 6 жыл бұрын

Excellent video! Now my each n every concept regarding effect of exchange is clear. Thanks a lot sir.

@mettleUnbeaten 2 жыл бұрын

Excellent work sir! It helps me in understanding this falling/ depreciation/ appreciation of rupee, Possible goals of demonetization, Trade deficit, RBI's procedure to tackle the increasing demand of the US Dollar, and most importantly role of interest rates in an economy, etc in very easy language. Great lesson indeed! 👌

@harithakassireddy6412 5 жыл бұрын

Thank you so much for explaining us clearly.

@stutibanerjee936 2 жыл бұрын

I am addicted to ur videos.. what an excellent teacher u r

@deepakchaudhary3061 6 жыл бұрын

You are awesome man I was reading this topic just before your video .

@vilasagarampranay1703 6 жыл бұрын

👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏Awesome Awesome nobody can explain in the country like you sir.I can hear your voice for whole day sir.

@shreyahazra7226 3 жыл бұрын

Thank you so much for the clear explanation. I have an exam tomorrow and I hope this helps :)

@anilkumar-vx7it 6 жыл бұрын

Superb explanation by linking the concept with gst...

@BrainBoost962 6 жыл бұрын

After watching this video one can really have crystall clarity as far as appreciation and depriciation of rupees are concerned.Really awsome work sir, a big thumps up.looking forward for some more interesting videos

@sunilchanda1212 5 жыл бұрын

amazing video. thank you for sharing :)

@hemanthcv3877 Жыл бұрын

clear as a crystal. Thanks for the video❤️

@haknazarhallygylyjov3664 4 жыл бұрын

Great explanation! Keep up the great work!!

@MKay10100 6 жыл бұрын

This was very informative. Thanks :)

@vamsi1 4 жыл бұрын

Nice explanation with Practical details 👌

@samedu5163 Жыл бұрын

Very Important concept are made clear in simplified and precise way... Thank you so much Sir for another fantastic video🌹🙏

@nkritu_0421 6 жыл бұрын

Really thank you sir for such an information..

@EclipZeMuzik 6 жыл бұрын

i really like this keep up the good work!

@monikakala4632 6 жыл бұрын

Beautifully explained!

@drshwetalihitkar580 6 жыл бұрын

Nicely explained ..thanks :)

@vkmishra6582 6 жыл бұрын

Awesome as always...

@sumankapoor7682 6 жыл бұрын

Ultimate explanation... Thanks

@vishalsahu4233 2 жыл бұрын

very fruitful video, everyone must watch!

@tirunagarisrilatha2562 2 жыл бұрын

What a voice u have sir!......excellent Even ur explanation is also lucid....connected soooo many things... Tq for the effort.

@thepoonchcricket123 3 жыл бұрын

Excellent and Well concluded.. Was difficult and your way of teaching made it so easy

@manojakp8228 3 жыл бұрын

I watch more than 7 time now I am crystal clear

@saggyb9176 6 жыл бұрын

Nice explaination, But same question amit ji, Import - export things are understood well, but Why will a foreigner invest when rupee appreciates ( at 3:45 ) Please explain, even many of your viewers have asked the same question and not being answered yet. Hope u will reply soon .😊 Thanks

@furtherishere7568 Жыл бұрын

1$=70 or 1$=60, if rupee depreciate only ,foreign will benefit because they will get more rupee, I don't understand why u said foreigner will benefit only rupee appreciate, please reply me sir

@harishganesh3647 11 ай бұрын

@@furtherishere7568Exactly

@thegameboy3507 21 күн бұрын

Please waych again

@thegameboy3507 21 күн бұрын

Please watch again

@sagarbelwal2839 2 жыл бұрын

This video is master piece

@abrahamsaxah2379 2 жыл бұрын

trust me, u are the best

@muradorucov4825 2 жыл бұрын

AMAZING explanation.

@starlightoceanyt 3 жыл бұрын

Thanq ..for clear understanding 🔥

@lakshmin4809 6 жыл бұрын

Awesome presentation sir.thanku so much sir

@damewondkhar4322 2 жыл бұрын

The content is so satisfactory

@aniketvaidya 6 жыл бұрын

Excellent explanation Thanks a lot

@karanjitsingh9108 6 жыл бұрын

So nice of u sir...

@eshwarchandra3130 4 жыл бұрын

Wow......excellent......now it all makes sense for me ......thanks a lot .....

@damodharyadav5475 Жыл бұрын

Sir I think I never forget in my life,such a beautiful explanation sir

@theunknown8410 3 жыл бұрын

Thanks you. You did a great job. 😊😊

@boscomoons7742 6 ай бұрын

This was highly educative; thanks for the good work

@aatmikapuranik3244 5 жыл бұрын

very informative video good research and job

@kathyjohans7842 6 жыл бұрын

Superb...thanks a ton...

@manga1682 Жыл бұрын

Wow man, you did an excellent job,

@udhaybalamurali8901 11 ай бұрын

Thank you so much sir, For me now it's not a hard trotting hard topic.

@omkarsahu1804 4 жыл бұрын

Too much information in one go but is good as you touched almost every aspect of rupee appreciation and depreciation. One has to look multiple numbers of times to understand the minute details.

@maryelizebeth7409 3 жыл бұрын

Knowledgeable one❗

@priteshbagal9176 3 жыл бұрын

worth watching 💯✌️

@bheeshmarangu7628 5 ай бұрын

Man u make my life easy ❤

@mr.jaankar8551 3 жыл бұрын

It was hell informative.. thanks sir

@debasmitadas4775 6 жыл бұрын

Your voice is power.

@MelchorMoore 2 ай бұрын

Very informative. Also, very easy to understand since this isn’t my field of study

@remankumar9684 6 жыл бұрын

Super lecture great learning

@sijasami3946 6 жыл бұрын

thank sir for your hard work

@onarshquest Жыл бұрын

Im so thankful to you🙏

@rgarg303 6 жыл бұрын

Sir If possible... Please make some videos on Geography in Detail according to UPSC Syllabus mentioned in Optionals like Oceanography, Geomorphology, Climatology, Models & Theories etc.....

@sonalnarwani8803 6 жыл бұрын

thanks:) worth watching

@user-ol1zb7rj8v 5 жыл бұрын

Indeed informative

@narendranaik3180 6 жыл бұрын

sir there is one more glitch i guess ,or i may be wrong also.please check around 3:45sec to 3:50sec.please let me know

@Asdfghjkl-w3j 6 жыл бұрын

narendra naik, yes you are correct. I should be opposite

@ziashaikh9988 5 жыл бұрын

@@Asdfghjkl-w3j yes u r right bro

@mayurinaskar5237 5 жыл бұрын

Yes...its the opposite

@levintilak738 5 жыл бұрын

Also at 5:00 when ruppee appreciates, it will increase foreign investment. How?

@AnuragKumar-go9io 4 жыл бұрын

@@levintilak738 if they invest, they'll be earning in rupees and if value of rupee is strong against dollar, they'll get more dollar in exchange, as compared to when its value is low.

@onarshquest Жыл бұрын

2:56 Foreign Importers 4:20 We can export more By the way, I'm so thankful to you🙏🙂👍

@shaanikhan954 2 жыл бұрын

Well done sir , very well explained b 🌹 , though I'm a economics graduated I do find it elaborative 🤭

@askp1000 6 жыл бұрын

Very informative video.

@aabidallaie252 5 жыл бұрын

Nice explanation 💓💓💓

@harithakassireddy6412 5 жыл бұрын

I came to now that, this is how our Indian economy works now, and the ideas towards FDI is good for short term but will effect in the long run.

@divyasl7755 3 жыл бұрын

Thanks lot .....very helpful .......😊

@pavithrav2256 5 жыл бұрын

Very good explanation upload more thank u

@SDD543 5 жыл бұрын

I didnot understand how FDI would increase as rupee appreciates? Would not they (investors) have to pay more dollars to purchase rupee, making it expensive for them to invest? Please Explain.

@goldenmart6320 4 жыл бұрын

Hmm

@dhanushyekkar6996 4 жыл бұрын

If you are a American if you want to invest $10 in india, you will first exchange $10 with Rs500, (assume 1$ = 50 INR) And then want to invest INR500 in Reliance JIO. (Assume that the 1share vale of the company = 100 & you bought 5shares for 500) now the company at at its surplus profits you too got INR 1000 as dividends in subsequent years (now the shares have rised to 1share = INR 500) NOW you want to sell your share and you plan to take back all your investments&profit to your home country in the form of dollar. And now if the indian Rupees has appreciated its value i.e 1$ = 25Rs.. You would get 140$ For 3500INR (1000Dividend +2500Vale of shares sold =3500)(3500÷25= 140$) A huge profit for investing in developing economy. .. For 10 dollars you got 140 dollars..this is only possible if the value of indian Rs appreciates.. YOU must also note that If the Value of Rs is Appriciating and if it becomes equal to US dollar then you will not invest on india You will look into some other developing Country.. that is why India keeps on devaluing its Rupee Value against dollar by importing/investing in some other countries or borrowing loans which would impact on Indias economic growth & by that assuring that the availability of dollar is always less (simple economic law: when supply is less and demand is more then the price/Value of the commodity rises i.e, when the demand for dollar is high& supply is less you need to pay more INR to buy Dollars)it will also repeals/discourage invester to take back their investment whinch indirectly make indian Foreign Investment Stable... And other Advantages of devaluation of rupee aggainst foreign currency are It would directly Discourag domestic buyers from importing foreign commodities (You must pay more rupees for the dollar) For more Pros &cons www.economicshelp.org/blog/1299/economics/advantages-and-disadvantages-of-devaluation/

@confucius1491 4 жыл бұрын

Rupee appreciates....mean higher interest rate on loans by banks ( people go with less loans and. Thus less money in market and demand raises for rupee and value enhances )....mean higher interest on govt bonds and securities too.....now i ask you ....would you invest if you are going to get more interest?

@confucius1491 4 жыл бұрын

Basically a bank lend money either to govt for govt bonds and securities or to market people.....now if there is 8 percent interest on govt sec then bank increases interest rate of market loans say 12 percent....and thus this ultimately lead to inflation and hike in rupee demand and thus value.....now foreigners invest in govt securities due to much interest and secure too.

@saadhassanshahid1673 3 жыл бұрын

yes mam u r correct .after 1 year i m Commenting on ur comment,because i m studying this subject now only.My doubt gets cleared after reading the same doubts asked by u.