Economics Asked by InQusitive on April 7, 2021
I am from India and my question is related to conditions based in India which may be applicable to other countries as well.
Dollar value is gradually rising in India. I was trying to understand why. During this COVID season I was expecting the Dollar value to go down base on my below reasons and it didn’t happen.
I read about a little bit about it and trying to make connection between the below points to understand why.
India’s usual major expense for Dollar in large scale
India’s Rupee(currency) gain
What perplexing me are
Dollar is a safe heaven currency, when there is crisis or economic uncertainty like the one we are in now (i.e., Covid) most people start to hoard US dollars.
USD is the world reserve currency and it provides unmatched privilege to USA, any attempt to by pass it in international trade is fatal, you get boomed to ashes like Iraq or Libya.
Answered by Epic on April 7, 2021
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