Summary
The world of forex is undergoing a rapid evolution. Palaniappan Chidambaram, India's finance minister, announced India's intention to transition its currency, the rupee, to a fully floating and convertible status. Although managing its currency allows a country to manage its economy and maintain stability, such a policy comes at a great potential cost. Of the many arguments made by economists against a free-floating rupee, one is the likely volatility it will introduce and potential outflow of capital from India. Nevertheless, the prospects of trading the Indian rupee are an astounding potential for India and for the forex industry. With a population of more than 1 billion people, the Indian middle class approximates 300 million people. That is a big target group that has the capability to trade forex.
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Extract
Get Ready for the Indian Rupee
The world of forex is undergoing a rapid evolution. In recent years forex reflected the interplay of three major currencies: the U.S. dollar, the Japanese yen and the euro. The emergence of China ...
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