Why is the Japanese yen so weak in comparison to the dollar, even if Japan is a developed country?
The low nominal value of the Japanese yen is a result of World War II. Wartime spending led to massive inflation, such that by end of the war the Japanese yen was valued at 360 yen to 1 US dollar. The Japanese yen was pegged to the US dollar at this value and did not change until 1971. Since then, the Japanese has risen in value, reaching a peak in 2011 of 76 yen to 1 US dollar.(source: http://en.wikipedia.org/wiki/Jap...)The strength of a currency is actually measured not by its nominal value, but by its change over time. A low nominal value typically signifies a weak currency, but the trajectory of the Japanese yen since 1971 shows that it is in fact a strong currency which increased in value against the US dollar by 374% over 40 years.More recently, the Japanese has lost some value (110 yen to 1 US dollar as of September 20th, 2014), but this due active government policy to devalue the yen in order to improve the competitiveness of the Japanese economy by making exports relatively cheaper as well as hold off deflation.
Why is Kuwaiti Dinar the highest-valued currency in the world and what at the consequences of this exchange rate vs. the dollar on oil prices?
Before answering the question , let's examine some facts , to make sure you and I are on the same page.1 Kuwaiti Dinar =US$3.27 = £2.64 = €3.08Now let's move onto the question , most people question this and it's a good question.So , to answer this you have to know something about import and export.Import - when a good/service is brought into one countryExport - when a good/service is sold to another countryNow imagine you are a country A's President , your people are really hard-working and talented but your patch of land lacks natural resources , so what do you do?You make money for your country on the hardwork of your people and you import those resources from countries who are blessed with it.Now if you have a currency A$ and the country which you are importing from has B$ , so how will you buy stuff?You'll buy B$ for your A$ in your international market thus rising the demand and value for B$ and making its value go up.(This is over simplification , it's very complicated and many factors are involved here)So in the above example , country A are countries like the US , UK , Japan etc. Country B are countries like Kuwait , Saudi Arabia etc. And the resource is Oil. It's so useful that demand is always high and the Middle Eastern countries do not compete , they coordinate and mark up the price as they want.And there currency's value go up and up and up.Countries like the US , UK , India try to control this using Monetary policy thus attracting foreign investment and exports but middle eastern countries don't want either.That's my explanation for why the Dinars and Dirams are always flying.Thanks for reading.
Why does Rs 1 = 1.92 Yen when Japan is a developed country and many business tycoons reside there?
Foreign exchange rates can be deceptive many a times.Ok let me ask you another question. 1£ = 99.56 Indian rupee 1 US $= 64.75 Indian rupeeas on 12/10/2015.Does this mean that England is the worlds strongest economy even powerful than US? The answer is a clear no.Still don't get it? Ok, here's a simple story:A poor guy 'A' has a '100 rupee' note in his pocket and a rich guy 'B' has 10,000 '10 rupee' notes in his pocket. 100 rupee note> 10 rupee note And by this logic 'A' is richer than 'B'But wait, the twist in the tale... Let's calculate the total wealth...'A' has 100 x 1= 100 rs.'B' has 10 x 10,000 = 1,00,000 rs.Hence 'B' is richer than 'A'.What you are doing wrong here is making foreign exchange rate a basis of comparing two nations which is actually wrong.Countries must be compared on the basis of their national income and even more accurately on the basis of per capita income.There can be many such examples... Say for that matter,TCS (Tata consultancy services) is the largest company of India. Its share price as on 12/ 10/ 2015 is rs. 2592.4. It is a large cap stock.There is another company eicher motors whose share price as on 12/10/2015 is rs. 17981. It is a mid cap stock.Again, the share price can be deceptive.TCS has a market cap of Rs. 510813.74 crores where as Eicher motors has a market cap of Rs. 48804.99 crores, thereby making TCS the largest Indian company.I really hope this helps. :)
How many times was Indian currency devalued, and what are the years and reasons for devaluation?
Since independence our country has faced two major financial crisis (i.e 1966 and 1991) and at that time India has devalued the currency.India devalued Rupee for the first time in 1966. Devaluation of Indian Rupee in 1966 despite government attempts to obtain a positive trade balance, India suffered a severe balance of payments deficits since the 1950s. Inflation had caused Indian prices to become much higher than world prices at the pre-devaluation exchange rate. When the exchange rate is fixed and acountry experiences high inflation relative to other countries, that country’s goods become more expensive and foreign goods become cheaper. Therefore, inflation tends to increase imports and decrease exports. Since 1950, India ran continued trade deficits that increased in magnitude in the 1960s. Another additional factors which played a role in the 1966 devaluation was India’s war with Pakistan in late 1965. The US andother countries friendly towards Pakistan, withdrew foreign aid to India, which further necessitated devaluation. Because of all these reasons, Government of India devalued Rupee by 36.5% against Dollar.In 1991, India still had a fixed exchange rate system, where the rupee was pegged to the value of a basket of currencies of major trading partners. At the end of 1990, the Government of India found itself in serious economic trouble. The government was close to default and its foreign exchange reserves had dried up to the point that India could barely finance three weeks’ worth of imports. In July of 1991 the Indian government devalued the rupee by between 18 and 19 percent. The government also changed its trade policy from its highly restrictive formto a system of freely tradable EXIM scrips which allowed exporters to import 30% of the value of their exports.You can read article for more detailed answer.How many times has our currency been devalued, and why?Devaluation of Indian Rupee: Reasons & History Since 1947
Which was the single biggest income tax raid in India?
Angadias :In a major swoop, the Income-Tax (IT) department, helped by intelligence inputs from the National Investigation Agency (NIA) carried out a raid on angadias and seized cash, bullion, diamonds and precious stones to the tune of nearly Rs 200 crore. This is the biggest-ever seizure in India's history .They seized 102 bags from these tempos - and asked the persons on board - which included angadias, drivers, helpers and office boys of diamond traders to accompany them to Scindia House in Ballard Estate.In these packets we have found cash, diamonds, gold and silver jewellery which we are unaccounted for and being transferred through the angadia mode.”Income Tax Raid at Bhai Thakur's Office and Home :In media we have seen IT raid has captured 13000 crore rupees and even the pictures were shown.But On 13 August 2014, The Times of India (Mumbai) reported about the aftermath of an income tax department raid conducted on a group of builders in the Vasai-Virar region of Mumbai two weeks earlier.Accordingly, the Thane unit of the IT department raided Ameya Builders, Swastik Group and its partner Rajiv Patil, along with the first mayor of the Vasai-Virar Municipal Corporation and a relative (kin) of former MLA Hitendra Thakur. (Note that Bhai Thakur is elder brother of Hitendra Thakur. More on this later) The IT department seized cash and jewellery worth Rs 5.5 Crore in the raids at over 50 premises, an official said. It is also reported that following the raid, a group of builders admitted to concealment of Rs 390-crore earnings.Notably, the officials said that the tax evasion was by way of manipulation of land deals where Thakur's Viva Group's role has emerged.The exact amount that is seized though is not known.