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Offline Bimat

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Creation of the new Indian rupee symbol
« on: March 06, 2009, 12:47:45 PM »
Hi all,
Here comes an interesting article-Government of India is proposing to have a symbol for Indian Rupee coins (just like dollar,or Japanese Yen).Check this link for the details.

Aditya
It is our choices...that show what we truly are, far more than our abilities. -J. K. Rowling.

Offline Rangnath

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Re: Creation of the new Indian rupee symbol
« Reply #1 on: March 07, 2009, 12:21:06 AM »
Wow. Sounds interesting Aditya. Are you going to submit a design?
richie

Offline asm

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Re: Creation of the new Indian rupee symbol
« Reply #2 on: January 22, 2010, 08:04:25 AM »
Rupee symbol design: Meet the 5 finalists!

Very soon, the Indian Rupee too will get a distinct identity -- an identification symbol -- like the world's major currencies (Dollar, Pound Sterling, Yen and the Euro) have.

The Indian government had announced a competition in March last year inviting creative designs from Indian residents to represent the rupee in a simple form.

The finance ministry guidelines stated that the symbol should represent the historical and cultural ethos of the country. It should be applicable to a standard keyboard and has to be in the Indian national language script or a visual representation of it. The size of the final design should not be smaller than 232 square cm (36 sq inches).

Five designs were short-listed from over 25,000 applications received from across the country. The short-listed candidates made a presentation on the design in December and the winning design is set to create history in March.

The five selected designs are simple, easy to write and are designed to appeal to the Indian and international community. Some of these designs reflect the Devanagari script.

The finalists are not allowed to reveal the details of their design till the results are declared, expected in March 2010.

So what does it take to design a symbol of a currency? Click NEXT to find out what the creative brains, whose Rupee symbol designs have been short-listed, have to say.

Further information at:

http://business.rediff.com/slide-show/2010/jan/22/slide-show-1-rupee-symbol-design-meet-the-5-finalists.htm

Amit
"It Is Better To Light A Candle Than To Curse The Darkness"

Offline kansal888

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Re: Creation of the new Indian rupee symbol
« Reply #3 on: January 22, 2010, 01:07:09 PM »
The contest carries a handsome prize money also. The names and full addresses of the five finalists were uploaded on finance ministry's website on 18 Dec 2009.

Offline Bimat

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Re: Creation of the new Indian rupee symbol
« Reply #4 on: January 22, 2010, 02:26:11 PM »
Very soon, the Indian Rupee too will get a distinct identity -- an identification symbol -- like the world's major currencies (Dollar, Pound Sterling, Yen and the Euro) have.
So the Indian government thinks that Indian Rupee is one of the major currency of the world :D

This is the third design change in regular issues since 2003.(Till 2003-National Integration,2004-2006-Unity,2007-2009-Natya Mudra) So what happened to the proposed designs (with the theme Natya Mudra) for 5,10 Rupees coins?

Aditya
It is our choices...that show what we truly are, far more than our abilities. -J. K. Rowling.

Offline asm

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Re: Creation of the new Indian rupee symbol
« Reply #5 on: January 22, 2010, 02:49:26 PM »
Thanks Aditya. I knew that we had this thread on but could not locate it.

However, please note that there may not be any design change on the coins or the notes. It will only change the way one writes the word 'Rupee'. Instead of the word, there will be a symbol. I do not think it will appear as a symbol on notes.

Amit
"It Is Better To Light A Candle Than To Curse The Darkness"

Offline MS

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Re: Creation of the new Indian rupee symbol
« Reply #6 on: January 22, 2010, 04:56:46 PM »
So the Indian government thinks that Indian Rupee is one of the major currency of the world :D

At the rate we are progressing, there is every reason to believe the Indian Rupee will do well for itself in the global economies. RBI now has one of the largest gold reserves (550 tonnes) among central bank. If I remember correctly, it ranks in the top 10. It recently purchased 200 tonnes 2 months back giving it the best gold to foreign reserve ratios among all emerging economies. A symbol to recognize it is an excellent idea.

With the withering dollar, it is expected in the long run that there will emerge a basket of currencies that will restore the balance. Chief among this basket is expected to be the Chinese yaun. Currencies are expected to appreciate against the dollar. While the dollar is expected to continue to be the currency of international trade, it will be reduced to first among equals. Commodity traders are predicting a sustained bull run for gold, that asset class that people run to when everything else fails.

How much of all this will actually materialise we don't know but it looks like the RBI is making all the right moves in the last 24 months.

Offline Figleaf

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Re: Creation of the new Indian rupee symbol
« Reply #7 on: January 22, 2010, 08:36:26 PM »
Several different questions are touched upon here. Some loose remarks.

The Chinese yuan can never be a globally accepted currency as long as it is not freely convertible and the Chinese authorities are such control freaks that I don't think the RMB will be made convertible any time soon.

Buying gold two months ago does not seem like a particularly smart move to me. Gold has no return, like stocks or bonds, so the only income you can get from gold is from price appreciation. Gold appreciated quite a bit owing to insecurity among the US right and extreme right over the future of the dollar, but the crisis is now past its worst and economies are starting to improve. I don't think that last purchase is going to appreciate in value. On the contrary. In addition, it costs big money to keep gold, especially in such quantity.

What makes a currency a world currency? Stability and trust. I am sure INR is a trustworthy currency now, but it is not in India's long term economic interest to have a stable currency. India needs its export markets to develop. A currency that appreciates against the weakest of the world currencies, the USD, would over time diminish or even close the US market to Indian products and would make Indian labour comparatively more expensive in USD terms at a time when outsourcing labour-intensive tasks to India has become a pillar of the Indian economy. I have met economists from RBI. They are far too clever not to know this.

That doesn't mean having a currency symbol is a bad idea, though. It will save time, improve communications and it will just be fun, which by itself is reason enough to do it. I just hope they'll come up with something smarter than an R with a slash...

Peter
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Offline MS

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Re: Creation of the new Indian rupee symbol
« Reply #8 on: January 22, 2010, 10:12:03 PM »
Quote
The Chinese yuan can never be a globally accepted currency as long as it is not freely convertible and the Chinese authorities are such control freaks that I don't think the RMB will be made convertible any time soon.
Its not going to be an overnight process but a convertible Yuan will be there in a few years. If it is in the interest of the Chinese you can bet they will find a way. Its a matter of opinion and there are enough analysts on either side of the divide who think its not possible or who think its a matter of time. Right now the Chinese are in a dangerous situation with 2 trillion dollars in US treasury bonds and a weaking dollar is not good for them. Will be interesting to see how things unfold.
http://www.telegraph.co.uk/finance/financetopics/financialcrisis/5325805/Chinas-yuan-set-to-usurp-US-dollar-as-worlds-reserve-currency.html
Quote
Buying gold two months ago does not seem like a particularly smart move to me. Gold has no return, like stocks or bonds, so the only income you can get from gold is from price appreciation. Gold appreciated quite a bit owing to insecurity among the US right and extreme right over the future of the dollar, but the crisis is now past its worst and economies are starting to improve. I don't think that last purchase is going to appreciate in value. On the contrary. In addition, it costs big money to keep gold, especially in such quantity.
Central banks don't invest in physical gold with a primary intent of investment. It is there as a guarantee. When a bank note says "I promise to pay the bearer the sum of..." it cannot be idle talk, it needs to carry some weight. Having foreign reserves in an international currency which can potentially devalue is enough for Central banks to start hedging against it.
The RBI is not the only one to be making these purchases. This is a month after the Indian purchase.
http://www.commodityonline.com/news/Russian-central-bank-to-increase-gold-reserves-23814-3-1.html

Quote
What makes a currency a world currency? Stability and trust. I am sure INR is a trustworthy currency now, but it is not in India's long term economic interest to have a stable currency. India needs its export markets to develop. A currency that appreciates against the weakest of the world currencies, the USD, would over time diminish or even close the US market to Indian products and would make Indian labour comparatively more expensive in USD terms at a time when outsourcing labour-intensive tasks to India has become a pillar of the Indian economy. I have met economists from RBI. They are far too clever not to know this.

It probably will make us more expensive. Our exchange rate is driven by the market. The government seldom intervenes directly except as an extreme measure. Back in 1991 when I was still in high school, Manmohan Singh the then finance minister devalued the rupee. It went to 32 against a dollar. The market had to be opened up. We needed to be competitive in our international trades. Since then the rupee has by and large been swayed by the market. But that was 1991. In 2009, while exports dropped, we still grew by 6% backed by our domestic consumption when most economies stagnated. While labour-intensive and other service based industries are a strong pillar, they are not the only pillar to this economy. BOP for 2010 in India is expected to be surplus.

Offline Figleaf

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Re: Creation of the new Indian rupee symbol
« Reply #9 on: January 22, 2010, 10:42:12 PM »
Its not going to be an overnight process but a convertible Yuan will be there in a few years.

That's what the IMF said 12 years ago. I have followed the Chinese economy on and off for the last 35 years. Everybody was always too optimistic in their predictions on China. Humans have a great admiration for large countries and always overestimate them, while underestimating small countries. Express some economic numbers in per capita numbers and suddenly, things look different. Some examples. Foreign trade (exports plus imports) of Russia compares to that of Denmark, except that Russia's foreign trade is dominated by oil and thereby very sensitive to world oil prices. The Dutch population is roughly comparable to that of Australia. The richest country in the world is Luxembourg. Big is not necessarily beautiful.

Central banks don't invest in physical gold with a primary intent of investment. It is there as a guarantee.

Gold can only be a guarantee (of what, really? Try getting gold for your Indian banknotes) if it is in demand. Gold is of little industrial use and used mostly in jewelry. Its price is largely maintained by the superstition that it will be in demand when the world economy collapses. Of course, if gold is not a good investment, it works just like USD in your national reserves: those reserves go down, with nothing in return.

The government seldom intervenes directly except as an extreme measure.


Every time the RBI changes its interest rate policy (changing the core interest rate) it has a direct influence on the exchange rate. For an extreme example, look at Iceland in the early months of the crisis. The country was bleeding foreign currency at an unsustainable rate. The central bank increased the central interest rate to (if memory serves) well over 20% to support the krone.

In 2009, while exports dropped, we still grew by 6% backed by our domestic consumption when most economies stagnated. While labour-intensive and other service based industries are a strong pillar, they are not the only pillar to this economy. BOP for 2010 in India is expected to be surplus.

This is why I am so optimistic on India's development. Domestic consumption is picking up, giving domestic industry a much better base to develop and India's service sector is developing. The cause for the latter is the wage difference. As competition for well-trained staff increases, this advantage will slowly disappear, but it will get more money into domestic consumption. As domestic prices increase, production for export will gradually be replaced by production for domestic consumption, paid for by higher salaries. This is a healthy development process. Letting prices rise by appreciation of the currency by contrast means that you are losing your external competitive edge (plus you lose on the reserves of the central bank created with the BOP surplus) without the increase in the salaries and the development of domestic consumption.

Peter
An unidentified coin is a piece of metal. An identified coin is a piece of history.

Offline MS

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Re: Creation of the new Indian rupee symbol
« Reply #10 on: January 22, 2010, 11:14:23 PM »
Quote
Every time the RBI changes its interest rate policy (changing the core interest rate) it has a direct influence on the exchange rate. For an extreme example, look at Iceland in the early months of the crisis. The country was bleeding foreign currency at an unsustainable rate. The central bank increased the central interest rate to (if memory serves) well over 20% to support the krone.

Monetary policies followed by central banks are not akin to direct intervention on currency exchange rates. What happened in 1991 was a direct intervention. Modern India has faced two such crisis. One in 1966 and in 1991. The primary intent of Monetary policies is to regulate the supply and availability of money. Too much money in the market and they want control inflation by increasing interest rates, too less and they want to encourage its availability. But interest rates is only one of the tools at their disposal. In India, the Cash Reserve Ratio between Banks and RBI and the Repo rate are also used as leverage.

This entire debate reminds me of my economics professor. He was a very good teacher.

I too remember reading years back about convertible yuan that didn't materalise. I do feel that ground realities are different now. The collapse/stagnation of economies in 2008-09 may prove to be a watershed moment. Only time can tell I guess.

Offline asm

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Re: Creation of the new Indian rupee symbol
« Reply #11 on: January 23, 2010, 02:05:39 AM »
That doesn't mean having a currency symbol is a bad idea, though. It will save time, improve communications and it will just be fun, which by itself is reason enough to do it. I just hope they'll come up with something smarter than an R with a slash...

Peter

Peter,
It seems some of the designs that have made it to the final 5 are said to be in Devnagri. That is the script used for most North Indian Languages. I too hope that it is not an R with a slash either vertical or horizontal. I do have faith in the ability of the Indian designers. However, I will keep my fingures crossed. We do not need something like the recent coin series - The cross (Intigration?) or Information Technology (wavy lines or water?)

Amit
"It Is Better To Light A Candle Than To Curse The Darkness"

Offline annovi.frizio

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Re: Creation of the new Indian rupee symbol
« Reply #12 on: January 28, 2010, 04:58:11 PM »
my draw   :-)


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Offline Figleaf

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Re: Creation of the new Indian rupee symbol
« Reply #13 on: January 28, 2010, 06:18:02 PM »
Perfectly good solution. One stroke only, not confusing and the upper part is reminiscent of Devanagari. Clever.

Peter
An unidentified coin is a piece of metal. An identified coin is a piece of history.

Offline annovi.frizio

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Re: Creation of the new Indian rupee symbol
« Reply #14 on: January 29, 2010, 12:28:00 AM »
thank you, but the choose true symbol wath is for curiosity???
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