Finance, Forex and Investments

at what rate is the indian currency produced? i mean on what basis?

i feel why cant rbi produce many currency to reduce poverty!! this question has been striking my mind from a long time..

Public Comments

1. Its good question, Many people would not be knowing the answer. But even i am not sure but as per my knowledge. Any country whether its india or any other country can produce only that much currency which equals to their gold... It means they can produce currency not exceeding the value of gold they have with them... For example : Let say Indian Government have 100 Gram Gold and each 10 Gram equals to Rs. 15000, it means 100 Gram = Rs. 150000. So indian government can produce currency valued to Rs. 150000. If rbi can produce currency to reduce poverty than i think no country in this world would be having poverty and there many countries who have poverty at the maximum level and they are behind to us....