u/Complete_Ad7038

You might as well let it be... it basically reached 97 before RBI bought up more ₹ to bring it down to like 96.6. Give up! Make conversion easier /s.

India's economic characteristics in many ways are somewhat similar: An up-and-coming manufacturing and services sector and we import a lot of oil. The Reserve Bank has nearly 700B USD to defend this system. I think that India could adopt "the New Indian Rupee" like the Singapore Dollar, the Reserve Bank uses an undisclosed weighting (to prevent speculation on the exchange rate) of 5-6 currencies based on biggest trade partners and weights them against a targeted exchange rate. I did some research and used some AI to come up with a target of 54 NIR = 1 USD. The reason this works is that if one currency in the basket depreciates another is bound to appreciate, keeping it relatively stable. RBI could also use a range, as in the rupee should not fall below 50 or go above 58 per dollar. Keeping both exporters happy and imports at stable prices

This means a couple positive things (may be inaccurate or over-optimistic):

If the Chinese Yuan is considered in the weighting (which it should be because india runs a huge trade deficit with them) it could potentially reduce the deficit with them.

Fuel prices stabilise (because some oil producing countries like UAE are included in the weighting)

Regional confidence, countries like Sri Lanka or Bangladesh might want to peg or shadow their currencies with the NIR due to stability.

Less panic buying of hard assets like gold due to depreciating value, so more capital stays within the country.

Reintroduction of paise coins (20, 25, 50 and 1 rupee coin) which prevents vendors from rounding prices up due to negligible value

I am certainly not well-versed in economics but I wonder if this is plausible at all. I think with the right government this could certainly happen.

I drafted a rather detailed document showing how I would weigh the currencies as well as potential upsides and a timeline of the currency introduction, assuming it happens when the rupee reaches 96 per dollar.

Please give feedback and criticism, I am really just curious to see if this is feasible because if this can happen it would really benefit the Indian economy.

DOCUMENT (formatted with AI cos im bad at it): https://docs.google.com/document/d/1EA79f4uZpcJ4f88cJtIsR9BNrKohZuPlEn7NYoj0o0Y/edit?usp=sharing

I live on the southeastern side of Singapore, facing the east coast. I have lived here for most of my life and I think I am somewhat well integrated into local life as compared to other questions. I'm sure many of you have questions about what its like in the Lion City not just the touristy parts but living here and the lesser known but just as interesting parts of Singapore. Feel free to ask!