HAWALA LOGIC
POSTED BY ANAND
RANGANATHAN<http://www.newslaundry.com/author/anand-ranganathan/>|
AUGUST 20, 2013 IN
ECONOMY <http://www.newslaundry.com/category/articles/economy/> | 63
COMMENTS <http://www.newslaundry.com/2013/08/hawala-logic/#comments>


http://www.newslaundry.com/author/anand-ranganathan/








Look at the series of figures given below, of the Rupee – Dollar exchange
rate for the months immediately preceding the Indian General election.


A.
[image: 
2014-elections]<http://www.newslaundry.com/wp-content/uploads/2013/08/2014-elections.jpg>
B.
[image: 
2014-elections-2]<http://www.newslaundry.com/wp-content/uploads/2013/08/2014-elections-2.jpg>
C.
[image: 
2014-elections-3]<http://www.newslaundry.com/wp-content/uploads/2013/08/2014-elections-3.jpg>
D.
[image: 
2014-elections-4]<http://www.newslaundry.com/wp-content/uploads/2013/08/2014-elections-4.jpg>
E.
[image: 
2014-elections-5]<http://www.newslaundry.com/wp-content/uploads/2013/08/2014-elections-5.jpg>
F.
[image: 
2014-elections-6]<http://www.newslaundry.com/wp-content/uploads/2013/08/2014-elections-6.jpg>
G.
[image: 
2014-elections-7]<http://www.newslaundry.com/wp-content/uploads/2013/08/2014-elections-7.jpg>
H.
[image: 
2014-elections-8]<http://www.newslaundry.com/wp-content/uploads/2013/08/2014-elections-8.jpg>
The Rupee was devalued because of:
(i) Impending political instability
(ii) Nervous foreign investors
(iii) Capital flight courtesy US quantitative easing
(iv) Huge profitability gained by bringing back black money stashed abroad
in order to cover Election expenses.



3. Study carefully the figure provided below
[image: 
2014-elections-11]<http://www.newslaundry.com/wp-content/uploads/2013/08/2014-elections-11.jpg>
The only occasion in the past 30 years when this trend was reversed in was
in the months preceding the 2004 Indian General elections when the BJP-led
NDA was in power. The rupee appreciated against the dollar because:
(i) India was shining and the sentiment was sky-high
(ii) The BJP had less black money stashed abroad compared to the Congress
and therefore wanted the Congress to lose heavily on the exchange rate
(iii) The BJP was confident of winning the 2004 election and didn’t bother
to bring back its black money stashed abroad
(iv) Mr LK Advani was so sure of becoming the Prime Minister that he
forbade any wasteful election expenditure

-------------



Moral of above mail is convert your Rupee in to $ , Vote for congress and
wait for 3 years , Reconvert to rupee.

your money will be doubled.   :) :)

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