Quantitative Easing - Rupee Depreciation
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- Опубликовано: 20 окт 2024
- This video will help viewers understand what exactly is Quantitative Easing (QE). What is the impact of Quantitative Easing by U.S. on the India equity, debt and currency market. Why did India Equity, Bonds & Currency markets got sold off when the QE slow down/tapering was spoken about.
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This was absolutely brilliant. Never has anyone explained real-life economics to me in such a clear and precise manner and not to forget, in the least time possible. It was 27 minutes of my life well spent. And the best part was that whenever there was the slightest doubt in my mind, you cleared it almost immediately in the following seconds/minutes as though you could read my mind. My own lecturers didn't do that although I was in the same room as them and you did it through a video. So thank you for your service.
I am happy tht people like you are helping india to learn as most videos are from western world
Thanks Amit :) would appreciate your comments on my other videos as well ... hope u have subscribed to our channel at ruclips.net/user/ambitionlearning
hands down....u made it so easy and simple for me to understand what is actually happening in the market :)
it can't be more simpler the way u explained.lots of thanks
pramod kumar Mohanty Most welcome Pramod :) hope u have subscribed to our channel for more videos
Explaining it in such simple language. Just great. Thanks
Thank you so much :)
This will be awesome for people from inside the industry or outside to learn and gain knowledge Thanks Team Ambition
Very well explained with real life effect. Hats off to you.
Thanks. Please subscribe to our channel and watch the other videos and do share your feedback there as well.
i am watching and learning many things from the videos u have uploaded and it helps to make me understand easy. thanks to upload such videos..
Pawan Bist Thanks Pawan
liquidity and money supply is majorly effected by reserve ratios.more than 80 % of money supply is due to fractional reserve lending..very good video.. thanks for making...
SIR ONE OF THE GREAT VIDEO ON THE RUclips CHANNEL.........WAT AN EXPLANATION SIR........IT WAS LIKE I M IN THE LECTURE AND UR GREAT EXPLANATION FORCE ME TO CONCENTRE............WAITING FOR NEXT VEDIO.......
hi Mr.shah ...thanks for explaining QE in such a simple way...pls keep uploading these kind of videos.
neha rathor Thanks again Neha ... i have a lot of such videos uploaded .. do watch them and would love to have your feedback :)
Very well explained. Simple n lucid presentation . Thanku kirtan sir
Thank you so much ma'am
Kirthan - Very Well Done. the videos are very effective and easy to understand.Thank You.
Superb and really informative....many more to go...
+Avinash Tiwari thank you so much :)
Good work Kirtan, This is one of the best explanation i have ever heard on QE.. Even a non finance person can understand it. Keep it up & will wait for your other videos..
G8 job kirtan sir & team ambition..clearing four modules was possible only bcz it ws ambition..n v mch sure wuld clr oso ma finals..thanku ambition..proud to be a part of ambition family..
Thank you.. Very much, your service helps also an common man like me to move in the same direction as our country desire:)
My Pleasure Muthukumaran :) hope you have subscribed to our channel and watched all the 16 videos uploaded so far ... would love to have ur comments on the same :) keep learning .. you can subscribe to our channel at ruclips.net/user/ambitionlearning
i already subscribed to your channel, sure i will watch all your video & comment. once again thanks for your service.
Thanks so much
Thanks!
Dear sir, just saw ur video on RUclips... It was so refreshing to here from n, u alwz make the concepts so simple n easy to understand.. It's a very wonderful n supr initiative from your side to keep students updated about d recent happenings... God bless you.. Keep up ur good work.. Proud to b your student..
Nice demonstration & crystal clear explanation. thank you...
thanks so much Jigar... feels great to hear that u liked it... will update best of the content...
The way you structure the entire flow and sequence of events is great. Thanks for the help, this was really useful. Keep posting some current events as well.
Thanks
Thanks Nishant ... hope you have subscribed for our channel and watched the other videos as well ...
Thanks Deep ... Hope u have seen the other 2 videos as well
Excellent way of teaching.
yes we will keep uploading... thanks Roshni...
Fantastic explanation on QE.
Thanks Naveen (y) hope u have subscribed to our channel
Excellent video; lucid explanation.
Plz upload. more like this.. great work.
Harsha: Normally when the dollar appreciates the rupee depreciates and hence when u import gold it becomes expensive in rupee terms and hence falls.
it was really worth watching video ...it made me clear all ma doubts...thnks sir....wish that u keep uploading videos...
waiting for more such vid's from you...so far very helpful..thnk you
Excellent............Liked your approach
+Prasad Rao thank you so much :)
It was so refreshing to here from n, u alwz make the concepts so simple n easy to understand.. It's a very wonderful n supr initiative from your side to keep students updated about d recent happenings... God bless you.. Keep up ur good work.. Proud to b your student..
Hi team, very useful videos..Thanks for uploading..Very relevant when so much is happening in the world markets!!!
Amrita Sarker Thanks Amrita
super work dude.. keep explaining by giving examples wch u did in de video.. appreciated.. keep uploading :)
Wonderful. Realy Very Helpful...... Thanks Kirtan Sir
very clear explanation
informative...this will certainly help students
Excellent video...Keep posting such informative videos.....Great Job.... Keep it up....
Praveen, Thats exactly what i have explained in the video. Please check the video again.
Its superb.. its very helpful, informative, engaging....waiting for more such videos...
Thanks so much ... feels good to have this comment from someone whos been doing related work day in and out ... 2 other videos are up on marginal standing facility and current account deficit ... soon also uploading carry trade and real effective exchange rate videos .. would love to hear from you on the same as well ..
Hi Mahendra, This may not be the only factor but surly a major one today ...
thnaks a lot...it helps a lot to understand the current happenings in the market...
Very nice informative.
thanks santosh ... i hope u have gone through the other 2 videos as well on marginal standing facility & current account deficit
Great bro
WHat does buying debt mean? Is that RBI borrowing money from the banks' deposits?
Does this affect NDTL?
My pleasure Sagar :D do watch the other videos as well and lets me know if u need some help, take care.
Awesome video
Hi, This is fantastic. Superb job.
aditya jain Thank you :) hope you have subscribed to our channel and seen the other videos too.
Ambition Learning Solutions Hi, i have a question. I live and work in Europe. Being a NRI, am i allowed to trade in derivatives (F&O) from here.
Helpful
gr8 explanation :D
plz keep posting more videos
excellent explanation,
if this is the kind of explanation you people teaches then i will definately join
Thanks so much Prasad. Yes this is the way we deliver in the class :) ... you can view what we do at www.ambitionlearning.comHope you have subscribed to our channel, if not please do it and watch
all my videos uploaded and do comment and like. We have 17 videos
uploaded so far at @ambitionlearning
Thanks Tejas ... hope u have seen the remaining videos tooo ...
awesome explanation.!!
waiting for the next
gud video sir..
waiting for the next
jus awesum sir nice work...
hi kirtan. first on all thank you for a FANTASTIC explanation. really made things very clear. i have totally subscribed to your channel. it would be silly not to. :) i have a question. its probably a really silly one and the answer may be very obvious, but im still struggling with it. the question is:
if the US market is seeing bonds being sold because of what bernanke said about tapping down, why did investors take their money back to the US? sure theyre getting a higher interest rate (like you said theyre inversely related) but whats the point of a high interest rate when nobody wants to buy the bonds you own.
slightly confused because it seems a little counter intuitive....
id be very grateful if you could explain this phenomenon. thanks very much and keep up the FANTASTIC work. you guys rock.
Viraj Circar Hi Viraj, Thanks for the appreciation. The logic to your question is a one liner. When US investors started investing in India v/s when they started pulling off their investment, it was a 5 year gap. Things changed in 5 years to now make the US bonds more attractive.
Ambition Learning Solutions thanks for your response kirtan and team ambition. :) makes sense...like i said..probably a silly question.
Thanks Darshak :D hope u have seen the other videos as well ...
Excellent
Cv Venkatesh Thanks so much. Hope you have subscribed to our channel
Thanks for a detailed explination in a laymans' language. This vedio helped to get more insights on QE.. I have some doubts which I hope you will clear for me.
On 04/03/2015, RBI has reduced the key rates for the second time in a row. Now the repo rate is 7.5%. Various other central banks like People's Bank of China, European Central Bank, Bank of Japan are also slashing their key rates. however, the Fed, by contrast, wants to start raising rates soon to prevent the strengthening U.S economy from igniting inflation or causing bubbles in assets. It says the Fed needs to be cautious, in part because raising rates while other central banks are cutting theirs would likely drive up the US dollar value.
1.) How will dollar rate go up when other central banks ease their respective key rates where as the U.S. tightens the same?? Could you explain the process involved in this?
jithin krishnan In very simple terms, when a country reduces her interest rate's, the countries local currency supply increases and hence it value falls and inverse is also true.
God bless you..keep up your good work ..proud to b your student....supr liked ..
awsm man..outstanding effort
Manjeet Singh Thanks so much... Hope u have subscribed to our channel and have watched the other videos also..
video is great ..good initiative by team ambition ... keep coming wid such things sir .. :)
excellent explained
sir its an awsm video very informative, would luv to c more of dese.
thanks Rinkal
very nice video, a good attempt to help u gain more clarity in market concepts!
Thanks Amber :) hope u have watched the other videos uploaded by us. if not do subscribe to us at ruclips.net/user/ambitionlearning and watch all the 16 videos
That's a great video
Amazing ...
Very good explanation on QE.. The query that i had is that if the Central bank are pumping more liquid into the market (printing money) and buying debt doesnt that mean the currency will lose its value at one point if they do it more often and at the same time if other EM countries are not much dependent on US dollars as major currency
akshay rao Hi Akshay, When the central bank buys the debt and gives money to the banks, banks give more money to the pubic under loans and hence liquidity increases in market. 87% of the world trade happens in $ and hence there is a huge dependency on the $
Ambition Learning Solutions but the question is for how long can they buy the debt of other banks and keep pumping. If thats the case, the economy will be under pressure for that country and lot of debt will b there even if $ is the major currency ..
Excellent work Kirtan. Keep it up!!
Thanks Sunny :) Hope u have seen my other videos also, if not do watch them and subscribe at ruclips.net/user/ambitionlearning
Thanks Henil ... its all your efforts ...
thanks krunali
thx sirr !! gr8 detailing explaination!!
hi thankyou for explaining it so well :) I have a doubt which is why was there a liquidity crunch ? and if there was no money in the economy why didn't the Federal Reserve print money instead of making open market operations and lowering interest rates?
Pragya Srivastava - Thanks!The Fed will not print money because when they start doing it the value of dollar will fall as printing $'s will lead to more $'s in the market and hence the value will reduce. More over printing more money can also lead to Inflation.
thanks kavan... will try to update best of the content...
Great !!!
thanks Munjaal
Hi Shah.. I need a clarification on currency flactuation. $1 = Rs.50. I invested that Rs.50 and made Rs.55. Now, when I convert this Rs.55 to dollar, I get only $0.95 because rupee went up against the dollar. In this case, are we not suppose to understand that whenever the local currency performs well against the dollar, foreign investors make a loss as they get less dollar against the rupee.. So whenever the rupee goes up, investors make loss and vice-versa. Please throw a little light on this concept.. Thanks a lot!!
jithin krishnan What u r saying is absolutely correct and it is covered in the video
Great effort, thanks..
Awesome Sir!!!
Sir, please explain why rupee depreciated most as compare to other EMs currencies in more details? and what is relation between CAD with currency depreciation? and I read in news papers that main reasons for rupee depreciation are some fundamental problems in Indian economy like low productivity, poor infrastructure, persistent inflation.
learnt something ... being a science student its a bit of bouncher bt still nothing is better than something
Thanks Vaibhav,
I am a science graduate too. Post your questions and i would love to answer them.
Hope u have subscribed to our channel (ruclips.net/channel/UCvk93ytGDscb8VTYMvrIjHA) and watched all the other videos as well
Thanks Nishant
It is a brilliant video and I would like to thank you for providing such information, it is really helpful.
I had a couple of doubts though with regard to the FII's moving back to the US.
1) When FII's go back to the US, wont the US bond prices go up again hence dropping the interest rates?
2) When the FII's sell bonds in India, wont it drive the interest rates back up due to drop in prices?
And if so, wouldn't it be more lucrative for the FII's to invest back in India?
Tapan Karnik I am glad u liked it Tapan(1) Interest rates decide the bond prices, not the other way round. The other way of looking at it is when the invest there, they will invest in the new bonds offering higher interest rates whereas the old ones trading are still offering lower interest rates and their prices wont go up.(2) From the query i can make out what you are hinting to and i am going to try and answer that,Interest rates and yields are different terms and are used at different times. Interest rate is earned on investment in new bonds and yields are earned in investing in existing bonds trading in the market (yield and interest means the same its just for ur understanding)
thanka tejas
Thanks Dhawal ..
very well explained sir ....
Hello Mr.Shah. Could you kindly make another video explaining the relationship between (a) Interest Rate Vs Currency (b) Interest Rate Vs Inflation (c) Currency Vs Inflation.. and most importantly the disadvantages of QE. I presume that QE is a drama by the US Fed. The money that is being infused in the economy is doing no good for the public. With QE, rich people are getting richer.. All the money is going to Goldman Sachs' account.. Kindly explain these things for me as I find you explain things in simple terms... If you think otherwise, please share it with me..
jithin krishnan I will surely try and upload something on the topics u suggested
Hope u have seen the other videos too
brilliant
Thank you so much. Also do subscribe to our channel and watch the other videos.
Great explanation !
Thanks Mansi ... have u subscribed to our channel? if not u can do that and watch all the videos we have uploaded so far at ruclips.net/user/ambitionlearning
gr8 video really helped
Thanks Prateek.
please subscribe for my channel Ambition Learning Solutions at ruclips.net/user/AmbitionLearning?feature=watch and view all the videos
hi ,
i understood clearly about quantitative easing , thank q for uploading . Can u upload the video with explanation of Fiscal Policy ,along with basic terminology ?.
tQ .
dileep akuri Thanks. Sure i will try my best to upload it soon
OMG!! You are God!!! ...thank you so very much for this awesome video
:D my pleasure Preeti ... hope u have subscribed to our channel and watched all the others videos also .. if not subscribe at ruclips.net/user/ambitionlearning
Ambition Learning Solutions by Kirtan Shah yes !! that was the 1st thing i did after watching this video :D...Thank u agn :D
sure kamal... will upload soon
can u send video on how bond trading works in india
Dear Sir ,
why were the foreign investors all driven to shift their investments there.From 2.2% the interest rate might have touched 4 or 5 or 6 but it was still below the 8% interest rates which India offers.What exactly lured them to shift their investments to their country then? Even it had touched 8 %, and if it hadn't surpassed the Indian 8% rate (if it had surpassed,it makes sense ,no need to clarify) what exactly did them shift their fund sto their own country
Amazing. Do you have online learning programs?
thanks Dhairya