Wednesday, April 14, 2021
Home Fact-Check Media Fact-Check Fact check: No, Indian Rupee didn't lose against Bangladeshi Taka

Fact check: No, Indian Rupee didn’t lose against Bangladeshi Taka

Only obtuse minds will fall for this trope that since 1 INR is equal to 1.18 Bangladeshi Taka, the Indian currency is cheaper than the Bangladeshi Taka.

Many mainstream news outlets and social media, in their perverse knack of undermining Indian economy under PM Modi, had recently shared misleading news stating that the Indian Rupee had depreciated against Bangladeshi Taka. This, of course, comes at a time when the Indian economy is facing tough headwinds from global blues and other microeconomic factors that suggest definite retardation of the economy in FY 2019.

News Media outlet NewsX published an article titled “Forget US Dollar, Indian Rupee loses against Bangladeshi Taka now”. NewsX claims that the global slowdown has caused alarm bells as the Indian Rupee weakened against the Bangladeshi Taka. In the article, NewsX goes ahead mentioning that 1 Bangladeshi Taka = 1.18 Indian Rupee, which according to the article means that 1 Bangladeshi Taka is capable of buying 1.18 Indian Rupees. It further states that the Bangladeshi Taka performed best against the Indian Rupee before 2004 and after 2014.

These are nothing but grossly misleading assertions made by NewsX. Firstly, it is 1 INR that is equivalent to 1.18 BDT, and not the other way around. NewsX wrongly quotes that 1 BDT is equal to 1.18 INR. This despite the fact that in the screenshots they have used in the article to make such claims, it clearly shows that 1 INR is equal to 1.18 BDT.

Moreover, when 1INR is equal to 1.18 BDT, it means Indian currency is stronger than the Bangladeshi Taka and one has to shell out 1.18 Taka to get 1 Indian Rupee. Commodities bought for Rs 100 will have to be bought at approximately 118 Bangladeshi Taka. Consider 1 USD=71 INR, this doesn’t mean that the Indian currency is stronger than the USD. In fact, it means one has to spend 71 INR to acquire 1 USD which shows that USD is a stronger currency than the Indian Rupee. Historically, the Indian currency has always been stronger than the Bangladeshi Taka. Currently, the exchange rate is hovering around at 1 INR = 1.17 BDT.

Based on this flawed understanding of currency conversion, NewsX further infers that the weakening of Rupee against Bangladeshi Taka is catastrophic for Small Medium and Enterprise (SME) sector which is already facing competition from cheap imports from Bangladesh, Sri Lanka, China and other South-East Asian countries. This is purely speculation based, that too on a poorly interpreted exchange conversion between the Indian Rupee and the Bangladeshi Taka.

The Indian Rupee has certainly taken a hit in the recent days but it has never gone down below the Bangladeshi Taka. Furthermore, these swings in currency are cyclical and are dependent on multiple economic factors. Only obtuse minds will fall for this trope that since 1 INR is equal to 1.18 Bangladeshi Taka, the Indian currency is cheaper than the Bangladeshi Taka.

  Support Us  

Whether NDTV or 'The Wire', they never have to worry about funds. In name of saving democracy, they get money from various sources. We need your support to fight them. Please contribute whatever you can afford

OpIndia Staffhttps://www.opindia.com
Staff reporter at OpIndia

Related Articles

Trending now

From reports of shortages to black-marketing, is Remdesivir really the ‘miracle drug’ to cure Covid?

In November 2020, World Health Organization (WHO) recommended against the use of Remdesivir in Covid-19 patients stating that there was no evidence that the drug can improve survival.

What would Dr. Ambedkar say about Hindu and Muslim societies today?

What do you think Dr. Ambedkar would say today about the relative performance of Hindu and Muslim society in the years since 1947? Can you be as frank and clear in stating your thoughts as he was?

Covid panic: Govt cancels Class 10 Board exams, students to be given marks as per Board criteria

Class 10 students will be promoted on the basis of an internal assessment. The government will review the situation on June 1 and decide on Class 12th Board exams thereafter.

COVID-19 outbreak: Maharashtra to get 100 MT oxygen from Ambani owned Reliance’s Jamnagar plant

Urban development minister Eknath Shinde said that Maharashtra will receive 100 MT of oxygen supply from Reliance's Jamnagar plant

Uttar Pradesh: Chief Minister Yogi Adityanath tests positive for coronavirus

He had earlier isolated himself after coming in contact with Covid-19 positive officers with the CMO. Recently, he had taken first dose of coronavirus vaccine.

Recently Popular

Pfizer wanted Brazil, Argentina to put military bases, Federal reserve as collateral: Why India kept Pfizer away and how the usual suspects are wrong

Pfizer has been accused of countries in Latin America of pledging their sovereign assets, military bases and financial reserves to protect itself from any adverse fallout of the vaccine

OpIndia Exclusive: Tata Communications suffers data leak, hackers claim to have sold access to company’s servers, over 50GB data still up for sale

As per two posts by hackers on a hackers' forum, they have gained access to Tata Communications servers and sold them.

What happened in Chhabra after Hindu man was stabbed by Muslim men: Call for peace, attack on a Hindu the next day and more

On April 12, the administration extended curfew for one more day at Chhabra, Baran district in Rajasthan after the communal riot

Attempts to draw false equivalence between the Kumbh Mela and Tablighi Jamaat congregation do not make sense: Here’s why

Attempts are being made to draw false equivalences between the Kumbh Mela and the Tablighi Jamaat congregation last year.

It’s a lung… it’s a burnt toast… it’s a duck pic… No! It’s a painting by Mamata Banerjee

Mamata Banerjee did not appear in any election rallies or gave any statement regarding the ongoing Assembly elections in West Bengal after Election Commission banned her from campaigning for 24 hours

India has to become a ‘Hindu Rashtra’, or it will be turned into an Islamic nation by 2030: Kerala MLA

"Can we let this nation (go) to any particular community? This needs to be discussed. Somebody has to speak up," PC George emphasised.
- Advertisement -

 

Connect with us

254,077FansLike
528,961FollowersFollow
24,200SubscribersSubscribe