De-dollarisation
Understand de-dollarisation, its major forms, drivers, evidence, benefits and challenges, including reserve diversification, local-currency trade, gold and alternative payment systems for UPSC Economy.
Understand de-dollarisation, its major forms, drivers, evidence, benefits and challenges, including reserve diversification, local-currency trade, gold and alternative payment systems for UPSC Economy.
Understand dollarisation, its meaning, partial and full dollarisation, causes, advantages, disadvantages and implications for the currency-issuing country with examples for UPSC Economy.
Understand soft currency, its meaning, characteristics and examples, and the difference between hard and soft currencies based on stability, liquidity, international demand and acceptance for UPSC Economy.
Understand hard currency, its meaning, characteristics and examples such as the US dollar, euro, yen, pound and Swiss franc, and the difference between hard and soft currency for UPSC Economy.
Understand reserve currency, its key characteristics, major global reserve currencies and why central banks hold reserve currencies for trade, external payments, exchange rate management and protection against external shocks.
Understand India’s foreign exchange reserves, their components including FCA, gold, SDR and Reserve Tranche Position, RBI management, import cover, investment and uses for UPSC Economy.
Understand internationalisation of the Indian Rupee, its benefits, challenges and steps taken by India including SRVA, local currency settlement, UPI, currency swaps and INR-denominated cross-border lending for UPSC Economy.
Understand the difference between currency devaluation and depreciation, their exchange rate systems, causes, examples and economic impact on imports, exports, inflation, debt and remittances for UPSC Economy.
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