Glossary Terms

03

Dec'17

Revaluation

Revaluation is theincrease in the external value of the domestic currency made by the central bank under a fixed exchange …

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03

Dec'17

Managed Floating

Managed floating is an exchange rate system that has the features of both the flexible and fixed exchange rate systems. …

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03

Dec'17

Foreign Exchange Reserves

Foreign exchange reserves indicate the reserves of the RBI kept in the form foreign currency assets, gold, SDR and reserve …

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03

Dec'17

Liberalised Remittance Scheme (LRS)

The LRS is a facility provided by the RBI for all resident individuals including minors to freely remit upto a …

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03

Dec'17

Undervalued currency

An undervalued currency is the one whose value is artificially kept low to encourage exports and discourage imports.

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03

Dec'17

Currency War

Currency war is a term that describe competitive devaluation (or arranged depreciation) by countries to make their exchange rate competitive …

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03

Dec'17

Effective Exchange Rate

Effective exchange rate for India is the exchange rate of rupee derived from an index that includes several currencies weighted …

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03

Dec'17

Real Effective Exchange Rate (REER)

REER is a weighted average of nominal exchange rates adjusted for relative price differential between the domestic and foreign countries, …

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03

Dec'17

Nominal Effective Exchange Rate (NEER)

NEER is the exchange rate of the domestic currency vis-à-vis the basket currencies, weighted by the shares of the basket country’s …

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03

Dec'17

Remittances

According to the IMF, “Remittances represent household income from foreign economies arising mainly from the temporary or permanent movement of …

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