Currency Convertibility: Current and Capital

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Nitish Kumar

Petroleum engineer by degree, Geologist by interest and UPSC aspirant by choice!

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1 Response

  1. very nice article..
    However there are drawbacks as well of adopting convertibility
    Current account convertibility may lead to cost push inflation, domestic currency depreciation and can hamper capital inflow, the very basic purpose of convertibility.
    Capital account convertibility may lead to instability of Rupee, can affect domestic companies taking loans from outside when foreign currency appreciates against rupee

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