A lakh is a unit of measurement commonly used in South Asia to denote 100,000. It is widely used in India, Pakistan, Bangladesh, Nepal, and Sri Lanka, among other countries. The term ‘lakh’ is derived from the Sanskrit word ‘laksha,’ which means ‘one hundred thousand.’
In terms of currency conversion, the value of a lakh varies depending on the currency being used. For instance, one lakh Indian Rupees (INR) is equal to approximately 1,350 US Dollars (USD) as of April 2023. Similarly, one lakh Pakistani Rupees (PKR) is equal to approximately 585 USD, one lakh Bangladeshi Taka (BDT) is equal to approximately 1,185 USD, one lakh Nepalese Rupees (NPR) is equal to approximately 840 USD, and one lakh Sri Lankan Rupees (LKR) is equal to approximately 490 USD.
It is essential to note that the exchange rates for each currency fluctuate regularly and can be affected by a variety of economic and political factors. Therefore, the exact value of a lakh in USD or any other currency may change on a daily basis.
In India, the term ‘lakh’ is commonly used in various contexts, including finance, real estate, and salaries. For instance, a salary of five lakh INR per annum would mean an annual salary of 6,750 USD approximately. Similarly, a property priced at 50 lakhs INR would be valued at around 67,500 USD. In such contexts, the term ‘crore’ is also commonly used, which denotes 10 million. One crore INR is equal to approximately 135,000 USD.
The use of the lakh system in South Asia is deeply ingrained in the cultural and historical context of the region. The practice dates back to ancient times when traders used to conduct business using silver coins known as ‘rupyas.’ One rupya was equivalent to 80 ‘pice,’ which later evolved into the modern-day paisa.
In the early 20th century, the Indian government introduced the decimal currency system, which replaced the earlier system of pice and annas. Under this system, one rupee was divided into 100 paise. However, the lakh system continued to be used for large numbers in financial transactions and other areas.
In conclusion, the term ‘lakh’ is a unit of measurement commonly used in South Asia to denote 100,000. The exact value of a lakh in USD or any other currency may vary depending on the exchange rate. The use of the lakh system is deeply ingrained in the cultural and historical context of the region and continues to be used in various contexts, including finance, real estate, and salaries.
