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Last Updated: October 31, 2008  2,682 views

The history of Devaluation of Rupee

in: India

Money.jpgOn 16th Oct, 2008 I predicted that soon one dollar would become equal to 50 rupees. Just after one week, my prediction became correct. Now one US dollar is around 50 rupees. Now I think it is right time to tell you the history of Indian currency, rupee. The origin of the word “rupee” is found in the Sanskrit word rup or rupyah, which means “wrought silver,” originally “something provided with an image, a coin,” from rupah “shape, likeness, image.” Before independence, India was a land of hundreds of princely states. They used to run their own coins and currency notes.

After Independence in 1947, the Indian government brought out the new design Re. 1 note in 1949. The Lion Capital of Asoka was used for the design of that note.

India-1Rupee-1951.jpg

Devaluation of Rupee started in 1960s due to war with China and Pakistan, large government budget deficits and drought there was problem of inflation in India. There was sharp rise in prices. So Indian Government was forced to start some liberal policies to stabilize the economy which finally resulted into huge devaluation of Rupee.

During mid eighties, India started having balance of payments problems and by the end of 1990, India was in serious economic trouble. Our foreign exchange reserves had dried up to the point that India could barely finance three weeks’ worth of imports. Once again, the government decided to devaluate the Rupee. By the start of 21st century, the Rupee stopped declining and stabilized at 45. However in mid-2007, the rupee started gaining strength one dollar came below 40 Rupees. Now again due to recent economic crisis in world economy, one dollar has started touching the historical figure of 50 Rupees.

India_Rupee_Devaluation.PNG

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9
  • 1

    Hi
    Can you tell me how much the rupee has been devalued since 1880? Is there anyway to find out?
    Regards
    Drali

    Drali on December 8th, 2008
  • 2

    Hi,
    By the end of April Dollar will touch 56 re just because of our politicians.
    you know why?
    They are not here to serve you?
    Their aim is Earn money in quickest way.
    Only the poor people do not understand this

    Ravichandran on March 20th, 2009
  • 3

    how much time indian money will devaluated after 1947.pls give me clear figure on my email id

    amresh kumar on February 1st, 2010
  • 4

    how much time indian money was devaluated after 1947.and exactly on which years pls give me clear figure on my email id

    Madhavi Kadia on September 26th, 2010
  • 5

    how much time indian money was devaluated after 1947?And in which years? pls give me clear figure on my email id

    Madhavi Kadia on September 27th, 2010
  • 6

    hi will u plz tell me how many rupees were equal to 1 dollar in the year 1947.from some source i came to know it was equal is it true?

    akanksha on December 23rd, 2010
  • 7

    what is the future prediction for US Dollar against Indian Rupees. Though sensex is falling rapidly why not dollar price increasing. please reply

    sairam on February 8th, 2011
  • 8

    if 100 Rs. having at 1 man at 1960, how much rich in 2011.Please compare.

    suchindran on February 18th, 2011
  • 9

    wold bank or imf se jab jab hum karj maangne gae hia tab tab unhone hume apne currency ka devaluation karne ko kaha hai ,,,,,,,, ye rupia kabi 1947 me karib karib dolar k barabar tha par manmohan jaise bewkuf economists ne naas kar dia is desh ka , jis aasmi me “gurda” nahe wo to bhikhari b nae ban sakta or aise aise log hamare sarkar chalate hai,,,,,,, sarm aate hai muje apne economics ka syllabus ko content dekh k jo l hume sirf nokari pakadne k lia jhuth jhuth padhaya jata hai na k educated karnek lia …..

    chandraketu rathi on February 28th, 2011