INR vs USD: As we all are aware that value of Indian rupee is continuously falling down. In between now a new hoax are being circulated on social media that, in 1917, Indian 1 rupee was equal to 13 US dollars. People are also claiming that in 1947, one Indian rupee was equal to 1 US dollar. So now lets discuss about INR vs USD.
People are discussing on Quora forum as well about the same topic that why in 1917, Indian 1 rupee was equal to 13 US dollars. And why its fell down so much.
First of all we we would like to remind to all you that before 1947, India was under British rule and all transactions with outside countries were conducted in British currency or the pound. So there was no any type concept of direct comparison from US Dollar to Indian Rupee before 1947.
If you still want to compare US dollar to Indian rupee before 1947, you would have to use an indirect comparison method. First of all you will have to calculate the value of rupees in pounds and then convert to dollars.
In 1917, 15 Indian rupee was equal to 1 Pound.
15 Rupees= 1 Pound
1 Pound = 4.70 USD
So it proves that In 1917, Indian 1 rupee was not equal to 13 US dollars.
Fact Check -In 1947, 1 INR is equal to 1 USD:
Along with the confusions, there are two theories that make their fair share of rounds across the web about the value of 1 USD to INR are mentioned here:
Theory No 1: When India got independent in 1947, India has no borrowing from USA in its balance sheets and hence 1 INR was equal to 1 USD. India introduced its first 5 year plan in 1951 and thats the time then foreign borrowing started and then 1 USD was equal to 4.79 INR.
Theory No 2: Before 1947 India was under the British rule, and one of the British Colonies, the Indian Currency was then pegged against Pound during 1947 where 1 Pound is equal to 13 INR in 1947 until the Independence. India became a republic nation in 1950. The constitution of India came into existence in 1952. At that time 1 USD was equal to 4.16 INR or 1 USD =4.16 NCU. (NCU is National Currency Unit).