Financial Economics

How is India proliferating its Foreign Exchange Reserve?     M oney is at the core of every economic activity in the world. Governments need cash to run daily activities. Authorities usually raise funds either by capital gain or revenue gains, i.e. by selling goods and services or taking out loans. Nations usually hesitate to acquire loans as countries have to pay interest etc. And only apply for the loan for a longer period. New Delhi uses  Indian foreign exchange reserves  (made up of Indian foreign exchange or  Indian foreign exchange markets) to tackle short term needs. Thus, most of the Govt. Tries to use funds from revenue gains, but in the current coronavirus, crisis authorities are not having an adequate amount of reserves thus nations are now turning their attention to their foreign exchange reserves to counter its requirement. Thus, eventually, countries’ foreign exchange reserves are plummeting rapidly. The Kingdom of Saudi Arabia, Republic of China...

Devaluating Yuan   A Masterstroke by China   I have been criticizing China for their aggressive international policy, but one thing I would like to appreciate is their economic policy for handling of their currency in the global market. In the past and currently, many countries are worried about decreasing value of their currency, but China can devaluate Yuan without affecting their economic situation. The economies of those nations have shown an adverse effect, but China is on raising aside. So how did the Chinese economy is not only able to survive but also able to grow at a high pace? What are those steps that help China to achieve this? And how devaluating Yuan helped China? I will try to answer these questions in this blog To understand this, first, we have to understand the difference between the Devaluation of currency and Deprecation of currency. Devaluation of currency – ...

China is an emerging superpower from Asia. China has shown a significant amount of raise in GDP and development in the country. The credit to this development has given to the policies and steps taken by the Chinese Govt. in past. The expansion of their business is appreciable but nowadays these Chinese investments forced other countries to double check of their decisions to invite China into their country. We have different examples like Sri Lanka & Pakistan etc. China has invested in those countries heavily and taken their assets on a lease. This is creating a pressure on the other countries like USA and India. China has now extended his reach to Oceania, and it seems like Australia is a hot spot for China. Australia also has given a boost to relations with China. I am not saying the relationship with China is bad for Australia, but I am saying Australia is over-dependent upon China. To understand let's see in detail. 1.       Exports and...