Delinking ‘the two rupees’: The devaluation dilemma and economic divergence in the decolonized subcontinent, September 1949–February 1951

By looking at the September 1949 dilemma on devaluation faced by the governments of Pakistan (and India), this article argues that it was an early episode of divergence between them following partition. The reasons for Pakistan to not devalue when India did so, have remained largely obscured in hist...

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Main Author: Rakesh Ankit
Format: Default Article
Published: 2023
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Online Access:https://hdl.handle.net/2134/20079440.v1
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spelling rr-article-200794402023-02-16T00:00:00Z Delinking ‘the two rupees’: The devaluation dilemma and economic divergence in the decolonized subcontinent, September 1949–February 1951 Rakesh Ankit (5005661) sterling area devaluation Pakistan India trade decolonization <p>By looking at the September 1949 dilemma on devaluation faced by the governments of Pakistan (and India), this article argues that it was an early episode of divergence between them following partition. The reasons for Pakistan to not devalue when India did so, have remained largely obscured in historiography. Deeply contested, the decision was a determining event through which the state staked its claim for economic sovereignty, internally and externally. It led to an official trade deadlock of seventeen months, especially in the eastern region of partitioned Bengal. It ended when the two governments established an exchange ratio for the two rupees, no longer at par with each other. This interactive delinking of currencies was symptomatic of the improvisational decoupling of the colonial subcontinent’s post-colonial states. In tracing its trajectory, this article contributes to the inconsiderable literature of why devaluation did not happen in Pakistan, revises the rationale offered and presents it as a contingent exercise in economic decolonization, generative of a post-colonial sovereign difference.</p> 2023-02-16T00:00:00Z Text Journal contribution 2134/20079440.v1 https://figshare.com/articles/journal_contribution/Delinking_the_two_rupees_The_devaluation_dilemma_and_economic_divergence_in_the_decolonized_subcontinent_September_1949_February_1951/20079440 CC BY-NC-ND 4.0
institution Loughborough University
collection Figshare
topic sterling area
devaluation
Pakistan
India
trade
decolonization
spellingShingle sterling area
devaluation
Pakistan
India
trade
decolonization
Rakesh Ankit
Delinking ‘the two rupees’: The devaluation dilemma and economic divergence in the decolonized subcontinent, September 1949–February 1951
description By looking at the September 1949 dilemma on devaluation faced by the governments of Pakistan (and India), this article argues that it was an early episode of divergence between them following partition. The reasons for Pakistan to not devalue when India did so, have remained largely obscured in historiography. Deeply contested, the decision was a determining event through which the state staked its claim for economic sovereignty, internally and externally. It led to an official trade deadlock of seventeen months, especially in the eastern region of partitioned Bengal. It ended when the two governments established an exchange ratio for the two rupees, no longer at par with each other. This interactive delinking of currencies was symptomatic of the improvisational decoupling of the colonial subcontinent’s post-colonial states. In tracing its trajectory, this article contributes to the inconsiderable literature of why devaluation did not happen in Pakistan, revises the rationale offered and presents it as a contingent exercise in economic decolonization, generative of a post-colonial sovereign difference.
format Default
Article
author Rakesh Ankit
author_facet Rakesh Ankit
author_sort Rakesh Ankit (5005661)
title Delinking ‘the two rupees’: The devaluation dilemma and economic divergence in the decolonized subcontinent, September 1949–February 1951
title_short Delinking ‘the two rupees’: The devaluation dilemma and economic divergence in the decolonized subcontinent, September 1949–February 1951
title_full Delinking ‘the two rupees’: The devaluation dilemma and economic divergence in the decolonized subcontinent, September 1949–February 1951
title_fullStr Delinking ‘the two rupees’: The devaluation dilemma and economic divergence in the decolonized subcontinent, September 1949–February 1951
title_full_unstemmed Delinking ‘the two rupees’: The devaluation dilemma and economic divergence in the decolonized subcontinent, September 1949–February 1951
title_sort delinking ‘the two rupees’: the devaluation dilemma and economic divergence in the decolonized subcontinent, september 1949–february 1951
publishDate 2023
url https://hdl.handle.net/2134/20079440.v1
_version_ 1802621279531958272