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In the context of the national currencies, bring out the difference between Depreciation and Devaluation. Also explain the factors that affect the value of Indian Rupee.
**Depreciation vs. Devaluation:** Depreciation and devaluation both refer to a decrease in a currency’s value but occur under different circumstances. **Depreciation** is a decline in a currency’s value in a floating exchange rate system due to market forces like supply and demand. For example, if tRead more
**Depreciation vs. Devaluation:**
Depreciation and devaluation both refer to a decrease in a currency’s value but occur under different circumstances. **Depreciation** is a decline in a currency’s value in a floating exchange rate system due to market forces like supply and demand. For example, if the Indian Rupee weakens against the US Dollar because of lower investor confidence, it is termed depreciation.
**Devaluation**, on the other hand, is a deliberate reduction in a currency’s value by the government or central bank under a fixed or pegged exchange rate system. For instance, if the Indian government decides to lower the Rupee’s official exchange rate against other currencies to address trade imbalances, this is called devaluation.
**Factors Affecting the Value of the Indian Rupee:**
1. **Inflation Rates:** Higher inflation in India compared to other countries can lead to depreciation of the Rupee as it erodes purchasing power.
2. **Interest Rates:** Higher interest rates attract foreign investment, leading to an appreciation of the Rupee.
3. **Economic Indicators:** GDP growth, trade balances, and fiscal policies impact investor confidence and thus the Rupee’s value.
4. **Political Stability:** Political uncertainty can reduce foreign investment and weaken the Rupee.
5. **Foreign Exchange Reserves:** Adequate reserves can support the Rupee in times of economic stress.
6. **Global Economic Conditions:** International market trends and economic conditions affect the demand for the Rupee.
Understanding these factors helps explain how various elements can influence the value of a national currency in global markets.
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Climate change and extreme weather events disproportionately impact women, particularly in developing countries. Women often bear the brunt of climate-related hardships due to existing social, economic, and cultural inequalities. They are typically responsible for securing food, water, and energy foRead more
Climate change and extreme weather events disproportionately impact women, particularly in developing countries. Women often bear the brunt of climate-related hardships due to existing social, economic, and cultural inequalities. They are typically responsible for securing food, water, and energy for their families, tasks that become increasingly difficult during extreme weather events like droughts, floods, and storms.
These challenges can limit their access to education, health care, and employment opportunities. During and after disasters, women face heightened risks of violence, displacement, and loss of livelihoods. Pregnant women and those with young children are especially vulnerable to health risks and malnutrition.
Furthermore, women often have less access to resources and decision-making processes, reducing their ability to adapt and respond to climate impacts effectively. Despite these challenges, women play crucial roles in climate change mitigation and adaptation, often leading community resilience-building efforts. Addressing gender inequalities and empowering women is essential for creating sustainable and effective climate solutions.
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