In this write up we will try to explain the effect of higher fiscal deficit on currency exchange rate and import/export of a country. We will take the example ofIndiawhile explaining the same. High Fiscal deficit increases the government borrowing in the money market as the government borrows more to compensate the gap. Who are […]Continue Reading... No Comments.
Once we understand the impact of exchange rate on Import industry, it is very easy to understand its impact on export industry as well. Exporters use exchange rate just opposite to the importers. For export, the players or the companies sell their products or services in US dollars (considering it to be the global standard), […]Continue Reading... No Comments.
Exchange rate (mainly USD: INR) has significant impact on the import and export industry and its current value drives the growth in those particular segments and decides the profitability of the main players involved. To understand the main impact on import industry, we have to first understand how the import players use exchange rate. For […]Continue Reading... No Comments.