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.
China’s Forex reserves touched a record high of USD 3 trillion in May 2011 which is much higher than the second place ofJapan’s USD 1.2 trillion Forex reserves.India’s Forex reserves stands at around USD 300 billion. Chinacontinuously try to boost its trade activity and industrial output to deliver fastest GDP growth in the World continuously.China’s […]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.