UK
AU
USINR Exchange Rate
Ahh, India: the country that brought you chess, the Taj Mahal and, of course, the neti pot.
What influences the GBP/INR exchange rate?
In 1947, India gained independence from Britain and the bond between the two countries remains strong in no small part because of the large Indian diaspora in the UK. Of UK residents born outside the UK, the dominant group is Indian-born nationals who make up almost 10% of the foreign-born population.1 While the UK was a primary trade partner for India in the 90’s, India now has stronger trade relationships with the U.S., U.A.E., and China. As a result, many in the UK are urging more action on strengthening the ties between the two countries, and any subsequent policy changes may affect the GBP/INR exchange rate.2
When reviewing the INR exchange rate, it’s important to keep in mind that the Reserve Bank of India (RBI) applies a ‘managed float’ exchange rate policy to the INR/USD relationship, which means that the RBI routinely trades in the forex market to ensure the USD/INR exchange rate is not too volatile. This policy may have subsequent effects on the GBP/INR relationship.
GBP/INR Snapshot
“The Indian diaspora is one of the largest and most historical of ethnic groups in the UK, we can already see the influence of this community in politics, and indeed the potential for British-Indian leaders to emerge to the very top positions including the Premiership of the UK".
--Keith Vaz (the longest serving MP of Indian origin)
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As of early 2016, India has outpaced China to become the world’s fastest growing economy at a rate of 7.2%.3 India is now the world’s 7th largest economy by GDP and home to the world’s second largest labor force. Comparatively, the UK ranks as number 5 in terms of GDP with a 2.52% growth rate.4
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India is one of the world’s largest gold importers and often outpaces China in the demand for gold jewellery. Simultaneously, jewellery accounts for almost 4% of all Indian exports.5
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The average cost of an Indian wedding in the UK is £50,000--more than double the cost of an average UK wedding.6
Whether you’re paying for a lavish wedding or sending money back home to friends and family, OFX can help you save on your international money transfers. If you need to make a payment to India, use OFX so you don’t get stung by high bank margins and fees. Register today to get access to our low rates and personalised service.
Currency Name: Indian Rupee
Currency Code: INR
Currency Symbol: ₹
Central Bank: The Reserve Bank of India
Countries Used In: The Republic of India. Unofficially used in Bhutan and Nepal
Major Unit: One Indian Rupee
Minor Unit: One Paise = 1/100 of one Indian Rupee
Note Denominations: 1, 2, 5, 10, 20, 50, 100, 500 and 1000
Coin Denominations: 50 paise,1, 2, 5, 10, 50, 75, 100 and 1000.
Sources
