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

711 ratings | 22436 views
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. Fill this feedback form for a better learning experience https://goo.gl/vrYPBw Click here if you want to subscribe https://www.youtube.com/user/TheRealSengupta Maps and sketches can be found on the instagram account search for "geographysimple"
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Text Comments (98)
Amit Sengupta (11 months ago)
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!
Sodium Chloride (9 months ago)
Yes I caught 🤗
Yogaraja T (11 months ago)
Thank you for the clarification.
Rohit Garg (11 months ago)
Sir please complete 11 class geography ncert remaining chapters soon...
game boy (8 days ago)
please sir i have a problem should the government take part in the monetary policy of the country or the central bank be independent? i think there is a two way traffic
mounica B (11 days ago)
Thank u sir
tamil Kavithaigal (14 days ago)
Very good explanation upload more thank u
Ali Asghar Jaffri (15 days ago)
Vije Krishnan (1 month ago)
Hello sir, I have a doubt on how rupee appreciation helps to improve FDI. That means rupee value is less so they have to spend more dollars to get more Indian rupee. Clarify that part.
Rajesh B Krishnan (2 months ago)
I found another glitch around 4.00, if rupee value is less, say it is 65.81 we shod be getting around 1.5 dollars, and if it is 50, we should be getting around 2 dollars for 100 rupees In that case if an investor is investing when it is 65.81, then we should be getting only less dollar compared to when it is 50. Then how come when rupee is less valued we can have more dollar reserve?
corijndv (2 months ago)
i really... APPRECIATE this explanation :D seriously though, thank you for the content
Simeon Dias (3 months ago)
Excellent.! I understood more in this 11 minute video than I have for a whole semester in college.
sunil chanda (3 months ago)
amazing video. thank you for sharing :)
Bikash Kumar (4 months ago)
why will US investors invest in India if the currency value appreciate? as u said in 3:40sec of ur video?
pujari praveena (4 months ago)
i have recently developed interest into economics ,your videos are beautifully explained to the point but could you take it little slow since you are too fast for me to understand
Shubhjeet (4 months ago)
Can u tell the software all the app which you are using
Muhammad Talha Siddiqui (4 months ago)
Sir which device u used for making of video
Chhavee Gupta (5 months ago)
you say..FDI Increases..when Rs appreciates..however I have a different view..see aFII will get more value of Rs when Rupee depreciates.
ninejot (5 months ago)
Doesnt rupee value follow FDI rather than the other way around? When FDI increases, the value to Indian rupee appreciates, where as you said it's the other way around.
jadhav maithily (5 months ago)
thank you very much sir,you're my best teacher that everything you teach is comprehensive and practical
M.H. (5 months ago)
Good day, I was wondering if you could tell me which (drawing/writing) software you are using to make this video.
Debasmita Das (5 months ago)
Your voice is power.
EclipZe Muzik (5 months ago)
i really like this keep up the good work!
Rohit Deshmukh (5 months ago)
Thanks sir....but at 4:01 you said depreciation attracts foreigners ...but in writing you write value of appreciation.....plz clear my doubt
THE MUSIC KING (5 months ago)
Really thank you sir for such an information..
Asutosh Pal (6 months ago)
Very informative video.
Hollywood landscape (6 months ago)
Nice explanation
Saroj kumar panda (6 months ago)
sir, i guess during the time of depreciation the FDI and FII goes up as with one dollar they can have more rupee. Another point, isn't it the other way that depriciation increases the FDI which in turn creates a demand for indian rupee and again causes appriciation.?
Miss K (7 months ago)
This was very informative. Thanks :)
rishikesh badgujar (7 months ago)
foreingner while investing in india want more rupee from one dollar then how 63.51 not 63.81 it should be 63.81 foe exchange please clear it sir
rishikesh badgujar (7 months ago)
foreingner while investing in india want more rupee from one dollar then how 63.51 not 63.81 it should be 63.81 foe exchange please clear it sir
Aebie Wonder (7 months ago)
Yes please reply for the Glitch at 3.50 around when foreigner invest..... Atleast tell if we git that correct
sija sami (7 months ago)
thank sir for your hard work
Shaggy (8 months ago)
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
Kathy Johans (8 months ago)
Superb...thanks a ton...
Akshat Anand (8 months ago)
Excellent video! Now my each n every concept regarding effect of exchange is clear. Thanks a lot sir.
reman kumar (8 months ago)
Super lecture great learning
amey potade (9 months ago)
can please any one elaborate why foreign investors prefer rupee appreciating trend to invest in India? or why they prefer buying appreciated rupee in comparison with depreciated rupee, where they could buy more rupees for few dollars?
Amar Mithare (9 months ago)
I just the love way you explain sir it's amazing very informative..
Sonal Narwani (10 months ago)
thanks:) worth watching
Shubham Sharma (10 months ago)
Why foreigner would invest when he is getting less rupees??
lance carter (1 month ago)
Sir as the other people said already.Kindly recheck between 3:40-3:50. A foreign investor would always want more money in return to his native currency...
akshay shah (10 months ago)
Why will a FII invest when rupee is appreciating , as for same dollars he is getting fewer rupees to invest.... Please explain
Shweta K (10 months ago)
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..
Shubham Singh (11 months ago)
Sir.. I'm confused Let's say If 1$=63.81 then a foreign investors wants to invest... Why one should invest if 1$=63.51.. As you are saying... Isn't it a loss for him???
saiteja pusarla (30 days ago)
when our indian economy is good our rupee gets stronger and one invested when 1$= 63.81let yesterday and i invested 1$= 63.51 today and when economy is weak rupee depreciates and let became 65. you will be profited 1.19rs and i will be profited 1.49rs. this might be the reason. hope this helps.
amit kumar (3 months ago)
+zia shaikh yes
zia shaikh (3 months ago)
+amit kumar it is other way around
Htoo Lay (4 months ago)
As far as I understand foreign investors wants to invest as they get more rupies when the exchange rate is higher.
Hussain shah (4 months ago)
He made a mistake it should be the other way around
Harish Singh (11 months ago)
Respected Sir, perhaps there is a lil mistake in the video at 3:44 minute.
REYNUKAA REVATHI (11 months ago)
Ur voice is superb
Yogaraja T (11 months ago)
IAS Ajay Gurjar (11 months ago)
Sir plz make video disaster management
Dr Shweta Lihitkar (11 months ago)
Nicely explained ..thanks :)
sachin m (11 months ago)
Sir please make an video on mideval indian history like the crash course on modern India please sir please
Suman Kapoor (11 months ago)
Ultimate explanation... Thanks
Kantraj Balnaik (11 months ago)
Best explanations for upsc and state psc's👌
The Real Gamer (11 months ago)
Thank you very much sir. You are like rare species of earth,doing a lot of hard work for we students.
AMIT KUMAR (11 months ago)
thanku sir
AbrAr Qureshi (11 months ago)
Sir, sometimes it seems that Rupee spruts 22 paise in early trade etc. What does it really mean?
AbrAr Qureshi (11 months ago)
Yes sir it was spurts not spruts.. correction*
AbrAr Qureshi (11 months ago)
Amit Sengupta thankyu sir! I was assuming this meaning before but now cleared.👍
Amit Sengupta (11 months ago)
+Abrar Ahmed Do you mean rupee spurs? Spur means appreciate (value goes up and actual number goes down).
aatif hussain (11 months ago)
Why would foreigners buy rupees when it has less value? How does GST remove money?
Amit Sengupta (11 months ago)
Now thinking about it, maybe instead of using "less value" I should have used "lower number or rate".
Amit Sengupta (11 months ago)
+aatif hussain Just as you would buy a stock which has less value knowing it would increase in future and earn you profit. About GST, I meant demonetization (apologies for that). I have pinned the clarification as a comment.
Lakshmi N (11 months ago)
Awesome presentation sir.thanku so much sir
vk mishra (11 months ago)
Awesome as always...
RAKESH SAINI (11 months ago)
One more glitch 10:39 when depreciated then it will increase foreign investment...is I am right???
narendra naik (11 months ago)
prescise explanation.
narendra naik (11 months ago)
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
zia shaikh (3 months ago)
+Aditya Shekhar yes u r right bro
Aditya Shekhar (8 months ago)
narendra naik, yes you are correct. I should be opposite
Ankur tyagi (11 months ago)
Sir, How did GST take out money from the market.? Didn’t get it.
Ankur tyagi (11 months ago)
Amit Sengupta welcome sir :)
Amit Sengupta (11 months ago)
+Ankur tyagi Thanks for pointing out. It's not GST, I meant demonetization. Apologies for the glitch.
sabit rawat (11 months ago)
sir still waiting for nxt part Indian history
Vilasagaram Pranay (11 months ago)
👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏Awesome Awesome nobody can explain in the country like you sir.I can hear your voice for whole day sir.
ANIKET Vaidya (11 months ago)
Excellent explanation Thanks a lot
ANKUSH CHAKRABARTY (11 months ago)
Sir please complete the geography series class 11 plzzzzzz ..sir...
rahul doddamani (11 months ago)
please complete course on economics
Monika Kala (11 months ago)
Beautifully explained!
Deepak Chaudhary (11 months ago)
You are awesome man I was reading this topic just before your video .
Pawan (11 months ago)
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
Sakthi kumar (11 months ago)
None can teach more effectively than this. Thanks a lot! :) Yes, it was indeed informative :)
Ghost Rider (11 months ago)
Super great bhaiya.
Rohit Garg (11 months ago)
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.....
Rohit Garg (11 months ago)
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...
Karanjit Singh (11 months ago)
So nice of u sir...
anil kumar (11 months ago)
Superb explanation by linking the concept with gst...
For geography optional english medium https://youtu.be/Lg7-0zkQGUk
Harsh Lamba (11 months ago)
Sir please make a video on industrial revolution
Prasanth (11 months ago)
Sir, please make a video on stock market 🗺
Vaishali J (11 months ago)
Sir please complete geography class 11th series 12th chapter onwards.. it would be great help.. Thank you
Lakshman Vajjakeshavula (11 months ago)
Thank u sir beautiful please complete economy history ncerts plzzzz

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