{"id":68766,"date":"2025-10-13T17:50:17","date_gmt":"2025-10-13T12:20:17","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=68766"},"modified":"2025-10-13T17:50:28","modified_gmt":"2025-10-13T12:20:28","slug":"exchange-rate","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/exchange-rate\/","title":{"rendered":"Exchange Rate, Meaning, Types, Systems, NEER, REER, PPP"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Exchange Rate is an important element in the global economic framework, shaping trade, investment flows, macroeconomic policy, and international competitiveness. It reflects the relative value of one currency in terms of another and plays a decisive role in influencing a country&#8217;s economic health, including inflation, exports, imports, and capital flows. Understanding exchange rate systems, currency valuation mechanisms, and factors affecting exchange rates is essential for policymakers, investors, and economists alike. This article provides an in-depth examination of Exchange Rate, its meaning, various types, related concepts such as Nominal Effective Exchange Rate (NEER), Real Effective Exchange Rate (REER), Devaluation, Revaluation, Purchasing Power Parity (PPP), and foreign exchange reserves.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">What is the Exchange Rate?<\/span><\/h2>\n<p><b>Exchange Rate<\/b><span style=\"font-weight: 400;\">, also called the rate of exchange, is the price at which one country&#8217;s currency can be exchanged for another&#8217;s. It represents the relative value of currencies in the international market and indicates how much of one currency is required to buy a unit of another.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For instance, if the US Dollar (USD) is stronger than the Indian Rupee (INR), it implies that the USD can purchase more INR, reflecting higher demand for the USD compared to the Rupee. The exchange rate thus mirrors the demand for a country&#8217;s goods, services, and assets internationally.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A higher demand for a foreign currency relative to the domestic currency results in appreciation of the foreign currency.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Exchange rates are influenced by trade flows, capital movements, inflation differentials, and interest rate variations.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Exchange Rate Systems Types<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Countries adopt different exchange rate systems depending on their economic goals, market openness, and policy priorities. The major systems are:<\/span><\/p>\n<h3>1. Fixed Exchange Rate System (Pegged System)<\/h3>\n<p><span style=\"font-weight: 400;\">In a fixed system, the government or central bank sets the value of its currency relative to a benchmark, which may be gold, silver, or another major currency (e.g., USD or Euro). Characteristics include:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ensures stability in international trade and capital flows.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Government intervention is necessary to maintain the fixed rate through buying and selling foreign currency.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Requires large reserves of foreign currency to defend the peg.<\/span><\/li>\n<\/ul>\n<p><b>Pegging:<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\"> When a currency is tied to the value of another currency or commodity (like gold), it is said to be pegged. For example, the Hong Kong Dollar is pegged to the US Dollar.<\/span><\/p>\n<h3>2. Flexible Exchange Rate System (Floating Rate)<\/h3>\n<p><span style=\"font-weight: 400;\">In a floating system, the currency\u2019s value is determined by market forces, the supply and demand of currencies in the foreign exchange market. Characteristics include:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">No direct government intervention.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Exchange rates fluctuate continuously based on trade flows, capital movements, and investor sentiment.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Helps automatically correct imbalances in trade and capital accounts.<\/span><\/li>\n<\/ul>\n<h3>3. Managed Floating Rate System (Dirty Floating)<\/h3>\n<p><span style=\"font-weight: 400;\">A hybrid between fixed and flexible systems. While the rate is primarily determined by market forces, the central bank intervenes periodically to prevent excessive volatility. Examples include: India uses a managed float, where the <a href=\"https:\/\/vajiramandravi.com\/upsc-exam\/reserve-bank-of-india\/\" target=\"_blank\"><strong>Reserve Bank of India<\/strong><\/a> (RBI) intervenes to stabilize the Rupee against excessive swings.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Fixed vs Flexible Exchange Rate Systems\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Fixed and Flexible Exchange Rate Systems have the following differences:\u00a0<\/span><\/p>\n<table style=\"width: 90.9706%;\">\n<tbody>\n<tr>\n<td style=\"text-align: center; width: 22.75%;\"><strong>Basis<\/strong><\/td>\n<td style=\"text-align: center; width: 37.1496%;\"><strong>Fixed Exchange Rate<\/strong><\/td>\n<td style=\"text-align: center; width: 38.3555%;\"><strong>Flexible Exchange Rate<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 22.75%;\">\n<p><span style=\"font-weight: 400;\">Determination<\/span><\/p>\n<\/td>\n<td style=\"width: 37.1496%;\">\n<p><span style=\"font-weight: 400;\">Officially fixed by the government<\/span><\/p>\n<\/td>\n<td style=\"width: 38.3555%;\">\n<p><span style=\"font-weight: 400;\">Market forces of supply and demand<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 22.75%;\">\n<p><span style=\"font-weight: 400;\">Government Control<\/span><\/p>\n<\/td>\n<td style=\"width: 37.1496%;\">\n<p><span style=\"font-weight: 400;\">Full control, only government can change rate<\/span><\/p>\n<\/td>\n<td style=\"width: 38.3555%;\">\n<p><span style=\"font-weight: 400;\">Minimal or no control; fluctuates freely<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 22.75%;\">\n<p><span style=\"font-weight: 400;\">Stability<\/span><\/p>\n<\/td>\n<td style=\"width: 37.1496%;\">\n<p><span style=\"font-weight: 400;\">Stable; small variation possible<\/span><\/p>\n<\/td>\n<td style=\"width: 38.3555%;\">\n<p><span style=\"font-weight: 400;\">Continuous fluctuations<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 22.75%;\">\n<p><span style=\"font-weight: 400;\">Currency Impact<\/span><\/p>\n<\/td>\n<td style=\"width: 37.1496%;\">\n<p><span style=\"font-weight: 400;\">Devaluation or revaluation possible<\/span><\/p>\n<\/td>\n<td style=\"width: 38.3555%;\">\n<p><span style=\"font-weight: 400;\">Appreciation or depreciation occurs naturally<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 22.75%;\">\n<p><span style=\"font-weight: 400;\">Government Bank<\/span><\/p>\n<\/td>\n<td style=\"width: 37.1496%;\">\n<p><span style=\"font-weight: 400;\">Determines rate<\/span><\/p>\n<\/td>\n<td style=\"width: 38.3555%;\">\n<p><span style=\"font-weight: 400;\">Not involved<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 22.75%;\">\n<p><span style=\"font-weight: 400;\">Foreign Reserve Requirement<\/span><\/p>\n<\/td>\n<td style=\"width: 37.1496%;\">\n<p><span style=\"font-weight: 400;\">High; to defend the peg<\/span><\/p>\n<\/td>\n<td style=\"width: 38.3555%;\">\n<p><span style=\"font-weight: 400;\">Not necessary<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 22.75%;\">\n<p><span style=\"font-weight: 400;\">BOP Impact<\/span><\/p>\n<\/td>\n<td style=\"width: 37.1496%;\">\n<p><span style=\"font-weight: 400;\">Deficit may not adjust automatically<\/span><\/p>\n<\/td>\n<td style=\"width: 38.3555%;\">\n<p><span style=\"font-weight: 400;\">Automatically corrects deficits or surpluses<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span style=\"font-weight: 400;\">Devaluation<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Devaluation refers to a deliberate <\/span><b>reduction in the value of a domestic currency<\/b><span style=\"font-weight: 400;\"> by the government in a fixed exchange rate system.<\/span><\/p>\n<p><b>Impact:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Makes exports cheaper and more competitive internationally.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Increases the cost of imports.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Can improve trade balance if export response is strong.<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">Revaluation<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Revaluation is an <\/span><b>increase in the value of domestic currency<\/b><span style=\"font-weight: 400;\"> relative to foreign currencies in a fixed system. Redenomination, which changes the face value of a currency without affecting its exchange rate, is distinct from revaluation.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Devaluation vs Depreciation\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The difference in between devaluation and depreciation is:\u00a0<\/span><\/p>\n<table style=\"width: 87.1538%;\">\n<tbody>\n<tr>\n<td style=\"text-align: center; width: 10.7488%;\"><strong>Aspect<\/strong><\/td>\n<td style=\"text-align: center; width: 46.1353%;\"><strong>Devaluation<\/strong><\/td>\n<td style=\"text-align: center; width: 47.4638%;\"><strong>Depreciation<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 10.7488%;\">\n<p><span style=\"font-weight: 400;\">Meaning<\/span><\/p>\n<\/td>\n<td style=\"width: 46.1353%;\">\n<p><span style=\"font-weight: 400;\">Official reduction in currency value by government<\/span><\/p>\n<\/td>\n<td style=\"width: 47.4638%;\">\n<p><span style=\"font-weight: 400;\">Decline in currency value due to market forces<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 10.7488%;\">\n<p><span style=\"font-weight: 400;\">Occurrence<\/span><\/p>\n<\/td>\n<td style=\"width: 46.1353%;\">\n<p><span style=\"font-weight: 400;\">Fixed exchange rate system<\/span><\/p>\n<\/td>\n<td style=\"width: 47.4638%;\">\n<p><span style=\"font-weight: 400;\">Flexible exchange rate system<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 10.7488%;\">\n<p><span style=\"font-weight: 400;\">Cause<\/span><\/p>\n<\/td>\n<td style=\"width: 46.1353%;\">\n<p><span style=\"font-weight: 400;\">Government policy<\/span><\/p>\n<\/td>\n<td style=\"width: 47.4638%;\">\n<p><span style=\"font-weight: 400;\">Supply and demand in forex market<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span style=\"font-weight: 400;\">Currency Manipulation<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Currency manipulation refers to <\/span><b>artificially lowering the domestic currency\u2019s value<\/b><span style=\"font-weight: 400;\"> to gain a trade advantage. Countries can boost exports by making them cheaper internationally, potentially creating trade imbalances.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The US Treasury monitors currency practices of major trading partners under the Trade Facilitation and Trade Enforcement Act of 2015.<\/span><span style=\"font-weight: 400;\">\n<p><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A country may be labeled a <\/span><b>currency manipulator<\/b><span style=\"font-weight: 400;\"> if it meets criteria regarding trade surplus, current account surplus, and foreign currency purchases.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Types of Exchange Rate Markets\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Exchange Rate Markets are of two types. Spot Market and Forward Market.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">1. Spot Market<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Deals with <\/span><b>immediate purchase and sale<\/b><span style=\"font-weight: 400;\"> of foreign currency, typically settled within 2 days.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The exchange rate for transactions is the <\/span><b>spot exchange rate<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">2. Forward Market<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Deals with buying\/selling foreign currency <\/span><b>at a future date<\/b><span style=\"font-weight: 400;\"> at a pre-agreed rate.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Useful for hedging risks against exchange rate fluctuations.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Exchange Rates Affecting Factors<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Exchange rates are influenced by multiple economic and financial factors:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Central Bank Intervention:<\/b><span style=\"font-weight: 400;\"> RBI or other central banks buy\/sell foreign currency to stabilize the domestic currency.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b><a href=\"https:\/\/vajiramandravi.com\/upsc-exam\/inflation\/\" target=\"_blank\">Inflation<\/a> Rate:<\/b><span style=\"font-weight: 400;\"> Higher domestic inflation reduces currency demand, causing depreciation.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Interest Rate Differentials:<\/b><span style=\"font-weight: 400;\"> High interest rates attract foreign capital, leading to currency appreciation.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Trade Balance:<\/b><span style=\"font-weight: 400;\"> Higher exports boost domestic currency; higher imports may depreciate it.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Capital Flows:<\/b><span style=\"font-weight: 400;\"><a href=\"https:\/\/vajiramandravi.com\/upsc-exam\/foreign-direct-investment-fdi\/\" target=\"_blank\"><strong> Foreign direct investment<\/strong><\/a> (FDI), portfolio investment, and external commercial borrowings affect currency value.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Other Factors:<\/b><span style=\"font-weight: 400;\"> Tourism, NRI remittances, political stability, and global economic conditions also influence exchange rates.<\/span><\/li>\n<\/ol>\n<h2><span style=\"font-weight: 400;\">Nominal and Real Effective Exchange Rates<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Nominal and Real Effective Exchange Rates means the following:\u00a0<\/span><\/p>\n<h3>Nominal Effective Exchange Rate (NEER)<\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">NEER is the <\/span><b>weighted average of bilateral nominal exchange rates<\/b><span style=\"font-weight: 400;\"> of a country against major trading partners.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Weights are based on trade volume with each country.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Not adjusted for inflation.<\/span><\/li>\n<\/ul>\n<h3>Real Effective Exchange Rate (REER)<\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">REER adjusts NEER for <\/span><b>relative inflation rates<\/b><span style=\"font-weight: 400;\">, reflecting the real competitiveness of a currency.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Weights depend on trade balance with each partner country.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Forex Reserves of India<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Foreign exchange reserves are assets held by the central bank in foreign currencies, gold, SDRs, and reserve tranches to support currency stability and international obligations. Components of FOREX:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Foreign Currency Assets (FCA):<\/b><span style=\"font-weight: 400;\"> USD, Euro, Yen, etc.; includes deposits and government securities.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Gold Reserves:<\/b><span style=\"font-weight: 400;\"> To back currency issuance and manage emergencies.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Special Drawing Rights (SDRs):<\/b><span style=\"font-weight: 400;\"> IMF-created international reserve asset based on a basket of major currencies.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Reserve Tranche:<\/b><span style=\"font-weight: 400;\"> Portion of IMF quota that can be freely accessed by member countries.<\/span><\/li>\n<\/ol>\n<h2><span style=\"font-weight: 400;\">Purchasing Power Parity (PPP)<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">PPP compares currencies using a <\/span><b>basket of goods approach<\/b><span style=\"font-weight: 400;\">. Two currencies are at parity if the same basket of goods costs the same in both countries when adjusted for exchange rates.<\/span><\/p>\n<p><b>Importance of Purchasing Power Parity:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Useful for comparing real living standards.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Helps assess whether a currency is overvalued or undervalued.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Often used to calculate GDP at PPP, reflecting true purchasing power.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Nominal GDP vs Real GDP vs GDP at PPP\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The differences in Nominal, Real and GDP at PPP are:\u00a0<\/span><\/p>\n<table style=\"width: 93.0768%;\">\n<tbody>\n<tr>\n<td style=\"text-align: center; width: 12.3418%;\"><strong>Metric<\/strong><\/td>\n<td style=\"text-align: center; width: 85.0191%;\"><strong>Definition<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 12.3418%;\">\n<p><span style=\"font-weight: 400;\">Nominal GDP<\/span><\/p>\n<\/td>\n<td style=\"width: 85.0191%;\">\n<p><span style=\"font-weight: 400;\">Total monetary value of goods\/services at current market prices.<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 12.3418%;\">\n<p><span style=\"font-weight: 400;\">Real GDP<\/span><\/p>\n<\/td>\n<td style=\"width: 85.0191%;\">\n<p><span style=\"font-weight: 400;\">Adjusted for inflation to reflect true output growth.<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 12.3418%;\">\n<p><span style=\"font-weight: 400;\">GDP at PPP<\/span><\/p>\n<\/td>\n<td style=\"width: 85.0191%;\">\n<p><span style=\"font-weight: 400;\">Converts local currency into USD considering relative costs of goods\/services. Reflects actual purchasing power.<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>Example:<\/b><span style=\"font-weight: 400;\"> A smartphone costing \u20b93,000 in India may cost $40 in the US. Using PPP, economists adjust for relative cost of living and exchange rates for meaningful comparisons.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Exchange Rate UPSC<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The exchange rate is an important indicator and tool in global finance. It reflects relative currency demand and supply, influences trade, investment, inflation, and economic policy, and serves as a benchmark for international competitiveness.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Understanding the various exchange rate systems are fixed, flexible, and managed float and mechanisms like devaluation, revaluation, NEER, REER, and PPP is important for informed policymaking and strategic economic decision-making.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Furthermore, foreign exchange reserves act as a buffer against external shocks, enabling governments to maintain stability in their currency and meet international obligations.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Mastering the dynamics of exchange rates equips policymakers, investors, and economists with the knowledge to navigate the complexities of international finance effectively, ensuring sustainable economic growth and stability.<\/span><\/p>\n<table style=\"border-collapse: collapse; width: 83.9666%; height: 75px;\">\n<tbody>\n<tr style=\"height: 25px;\">\n<td class=\"tb-color\" style=\"width: 85.004%; text-align: center; height: 25px;\" colspan=\"2\"><strong>Also Check Other Posts<\/strong><\/td>\n<\/tr>\n<tr style=\"height: 25px;\">\n<td style=\"width: 36.8256%; height: 25px; text-align: center;\"><a href=\"https:\/\/vajiramandravi.com\/upsc-exam\/care-economy\/\" target=\"_blank\"><strong>Care Economy<\/strong><\/a><\/td>\n<td style=\"width: 48.1784%; height: 25px; text-align: center;\"><strong><a href=\"https:\/\/vajiramandravi.com\/upsc-exam\/mutual-funds\/\" target=\"_blank\">Mutual Funds<\/a><\/strong><\/td>\n<\/tr>\n<tr style=\"height: 25px;\">\n<td style=\"width: 36.8256%; height: 25px; text-align: center;\"><a href=\"https:\/\/vajiramandravi.com\/upsc-exam\/alternative-investment-funds\/\" target=\"_blank\"><strong>Alternative Investment Funds<\/strong><\/a><\/td>\n<td style=\"width: 48.1784%; height: 25px; text-align: center;\"><strong><a href=\"https:\/\/vajiramandravi.com\/upsc-exam\/gdp-deflator\/\" target=\"_blank\">GDP Deflator<\/a><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>Exchange Rate influences trade, investment, inflation, and currency value. Learn its meaning, types, systems, NEER, REER, PPP, and forex reserves in detail.<\/p>\n","protected":false},"author":11,"featured_media":68734,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[786],"tags":[3233],"class_list":{"0":"post-68766","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-general-studies","8":"tag-exchange-rate","9":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/68766","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=68766"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/68766\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/68734"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=68766"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=68766"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=68766"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}