Is the economy able to be saved by dollarization of indian rupee?
Any nation's ability to develop is based on its economy, which is based on its currency. India's currency is the Rupee, but dollars are more vital to any nation's ability to sustain its economy. In a scenario like this, the strength of a nation's economy in relation to the rest of the world is also based on how full its foreign exchange reserves are.
Simplifying this will help you to understand that just as you carry cash with you when you go to the market, so too does our government pay in dollars when it needs to buy oil from Saudi Arabia, Iran, or Iraq. makes a difference. india must pay in US dollars for anything it purchases from the US, and it only gets paid in US dollars for anything it sells to any other nation. The dollar is used internationally even though the rupee is the currency of India.
Naturally, more and more dollars are required to maintain the strength of the nation's economy. In addition to this, dollars are obtained from the money that indians residing abroad send home to their families. However, have you ever considered that the country's currency could be saved by becoming a US dollar? One may wonder where this problem originated. Actually, Argentina's new president has pledged to exchange local currency for US dollars. Argentina's dollar reserves are limited, so this dollarization process can be completed as quickly as feasible.