The Double-Edged Sword: How Falling Currency Impacts a Nation’s Economy
Payal Sharma Monetary Economics As INR continues to fall against the Dollar, it's imperative to look at the impact of falling currencies on a nation’s economy. The dance of currencies on the international stage is a constant one, with fluctuations impacting a nation's economic well-being. A falling currency can be a double-edged sword. On the one hand, it can make a country's exports more attractive. For instance, Vietnam's textile industry boomed in 2023 as the Vietnamese Dong weakened, making their apparel more competitive against rivals like China. This can be a boon for export-driven economies, but it comes with a caveat: imports become more expensive. Countries like India, which rely heavily on imports like energy, felt the pinch in 2023 as the depreciating…