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1451579432-PRIYAWELIKEPROJECT.pptx (Size: 2.07 MB / Downloads: 7)
Introduction
The Reserve Bank of India (RBI) is India's central banking institution, which controls the monetary policy of the Indian rupee.
The RBI is also a banker to the government and performs merchant banking function for the central and the state governments.
It is a member of the Asian Clearing Union
Definition of RBI
“The central bank of India, which was established on April 1, 1935, under the Reserve Bank of India Act. The RBI uses monetary policy to create financial stability in India and is charged with regulating the country's currency and credit systems.”
CURRENCY FLUCTUATION
The exchange rate of one currency versus the other is influenced by numerous fundamental and technical factors.
A currency has value, or worth, in relation to other currencies, and those values change constantly.
Some currencies fluctuate freely against each other, such as the Japanese yen and the US dollar, others are pegged, or linked.
Effect of currency fluctuation on the economy
Currency fluctuations are a natural outcome of the floating exchange rate system
It include relative supply and demand of the two currencies, economic performance, outlook for inflation, interest rate differentials
A currency’s level is largely supposed to be determined by the underlying economy