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Why at Indian independence, one rupee was equivalent to one dollar

The value of rupees in American dollars today would be significantly less than we had anticipated. However, other stories claim that at one point in our nation’s history, 1 rupee was equal to 1 dollar.

The nation was divided up into a number of states during British administration, each with its own currency. A uniform currency was only created and used nationally after obtaining independence. As of October 17, 83.21 rupees are worth 1 dollar.

According to a research by thomascook.in, many people think that at the time of independence, 1 rupee was equal to 1 dollar. There are several grounds in favor of this assertion. The idea that all currencies had equal worth since there was no metric system is one that is often held. Another allegation is that since India was ruled by the British at the time and the pound sterling was more valuable than the dollar, the Indian rupee had a greater worth.

Calculations, however, indicate that when India gained its independence, 1 pound was worth 13.37 rupees, which suggests that the value of a dollar was 4.16 rupees. Nevertheless, the article claims that 1 dollar was supposedly equal to Rs 3.3 at the time of independence.

When the Bretton Woods agreement was adopted in 1944, the history of the dollar-to-rupee exchange rate began. Through this agreement, the value of all currencies was standardized. The website claims that since independence, the value of the rupee has been continuously declining. According to contemporary metric standards, the exchange rate in 1913 should have been Rs 0.09 for 1 USD. However, it had risen to Rs 7.50 to $1 by 1970.

According to official archives, one rupee never equaled one dollar. India switched to the international metric system at the period of its independence, which affected the value of the rupee.

 

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