Why 1 Rupee Was Equal To 1 US Dollar During Indian Independence – News18

If we had been to transform rupees into American {dollars} as we speak, the worth could be a lot decrease than anticipated. However, based on sure experiences, there was a time when 1 rupee in our nation was supposedly equal to 1 greenback.

During British rule, the nation was fragmented into a number of states, every with its foreign money. It was solely after gaining independence {that a} unified foreign money was established and applied nationwide. As of October 17, 1 greenback is equal to 83.21 rupees.

A report by thomascook.in means that many imagine, throughout independence, 1 rupee held the identical worth as 1 greenback. There are numerous arguments supporting this perception. One generally held view is that because of the absence of a metric system, all currencies had been of equal worth. Another argument claims that since India was below British rule on the time, the Indian rupee held the next worth in comparison with the greenback as a result of the pound sterling was stronger than the greenback.

However, calculations present that 1 pound was equal to Rs 13.37 earlier than independence, which might suggest a worth of Rs 4.16 to a greenback. Nevertheless, the report states that on the time of independence, 1 greenback was purportedly equal to Rs 3.3.

The historical past of the trade price between the greenback and the rupee dates again to 1944, with the passing of the Bretton Woods settlement. This settlement standardised the worth of worldwide currencies. According to the web site, the worth of the rupee has steadily declined since independence. By trendy metric requirements, in 1913, the worth ought to have been Rs 0.09 for 1 American greenback. By 1970, nonetheless, it had reached Rs 7.50 to 1 greenback.

Official data affirm that 1 rupee was by no means equal to 1 greenback. During independence, India transitioned to the worldwide metric system, thereby altering the worth of the rupee.