Comment on the following: The strong position of domestic currency is at large good for the economy.

A strong local or domestic currency, i.e., Indian rupee makes imports cheaper while a weak or not so strong rupee makes exports dearer. For an economy to perform well both exports and imports should be at a reasonable level. Exports lead to job creation and economic development of a country. A strong domestic currency will lead to exports getting stagnated. If exports are stagnated then economic development will suffer. If the domestic currency is strong then imports will be cheap and easy to procure. But if there are no exports there will be no foreign exchange to pay for the imports. Both exports and imports are necessary for a healthy economy. Therefore, a strong domestic currency may not be good for the economy. The relevant point is that the domestic currency should be at a reasonably healthy level.