Aartee Mishra is teaching live on Unacademy Plus
aily Lectuire Series Ramesh Singh' V brief summary o unacadeny 1 Indian Economy y Aartee Mishra External Sector inIndia Hindi
lam Aartee Mishra Graduated from Delhi University, Topper in all my semesters, Pursuing P.G and preparing for CSE. 2 Years of teaching experience of General Studies for competitive examination Have been teaching on Unacademy Plus
FOREIGN EXCHANGE MARKET . The market where different currencies can be bought and sold is called the foreign exchange market. Out of the trades in different currencies, the exchange rate of the currency is determined by the economy. This is an institutional framework for the exchange of one national currency for another This is particularly correct either in the case of a free float exchange (i.e., floating currency) regime or is a managed or hybrid exchange rate system. It is altogether not allowed either in a fixed currency system or a hard fix (in a hard fix this happens once the currency to which the hard fix has been done itself starts fluctuating)
EXCHANGE RATE IN INDIA Indian currency, the rupee', was historically linked with the British Pound Sterling till 1948 which was fixed as far back as 1928. Once the IMF came up, India shifted to the fixed currency system committed to maintain rupee's external value (i.e., exchange rate) in terms of gold or the US ( Dollar) In 1948, Rs. 3.30 was fixed equivalent to US $ 1. In September 1975, India delinked rupee from the British Pound and the RBI started determining rupee's exchange rate with respect to the exchange rate movements of the basket of world currencies ( , $, *, DM, Fr.). This was an arrangement between the fixed and the floating currency regimes.
EXCHANGE RATE IN INDIA In 1992-93 financial year, India moved to the floating currency regime with its own method which is known as the 'dual exchange rate There are two exchange rates for rupee, one is the 'official rate' and the other is the 'market rate'. Here the point should be noted that it is the everyday's changing market-based exchange rate of rupee which affects the official exchange rate and not the other way round But the RBI may intervene in the forex market via the demand and supply of rupee or the foreign currencies. Another point which should be kept in mind is that none of the economies have till date followed an ideal free-floating exchange rate They require some mechanism to intervene in the foreign exchange market because this is a highly speculative market.
Ancient & Medieval History From Harappa to Revolt of 1857 with brief Art and Culture (Prelims & Mains) ^ unacademi Aartee Mishra Detailed Coverage of each and every topic from Ancient to Medieval India Short Crisp Notes for better Revision Test Series Course Starting from, 30th July 9:30pm-10:30pm on Unacademy Plus
Meet you in Next Lesson Do remember to download the Unacademy Learning Appfrom the Google Playstore Do Subscribe to Unacademy's Youtube Channel Wi