Currency depreciation occurs when a currency loses value against another currency, causing imported goods to become more expensive. The Indian rupee has depreciated from 60 to 95 rupees per dollar over 12 years due to three main factors: foreign investors pulling money out of India (reducing demand for rupees), India importing more than it exports (more dollars leaving than entering), and rising crude oil prices (requiring more rupees to purchase dollars for oil imports). This depreciation means everyday expenses like petrol, phones, medicine, and electronics become more expensive for consumers.
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Why Rupee Keeps Falling Against Dollar Explained Banana Economics #RupeeFalling #IndianRupeeAdded:
In 2014, dollar cost 60 rupees. Today, cost 95 rupees. That's 58% more expensive in just 12 years. Nobody told monkey. This is called currency depreciation. Rupee losing value against dollar. But why? Three reasons. First, foreign investors pulling money out of India. Less demand for rupees, rupee falls. Second, India imports more than it exports. More dollars going out than coming in. Third, crude oil prices rising. India buys oil in dollars. More dollars needed, more rupee sold, rupee falls further. When rupee falls, everything imported gets expensive.
Petrol, phones, medicine, electronics, all imported, all costing more. Monkey didn't spend extra. Monkey still pays more every single day. Rupee falling is not just news. It is money quietly leaving monkey's pocket every single year. Follow for more banana size explanations.
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