It is the time when the ruppee should be left to appreciate without intervention.Though this will have negative impact over exports, for a while but because of imports will be cheaper which will cool off domestic supply constraints as well help in costs of manufacturing,ultimately supporting the exports in medium and long term. our trade balance is negative increased imports will help out competetiveness,since It sector has got the movementum going they should look for larger volumes at lower margins to keep up with the international competence.Ruppee appreciation will cool of spur increase in property and labour costs in return, which is good for the export oriented industries.Demand and supply impact will balance to price perceptions.Moderate inflation is the sign of healthy supply line, else the manufacturing instead of making pace with(higher volumes) supply they tend to lay back and profietering.Classic example is cement indusry. As they fore see huge demand in medium and long term but insteat of initiating to crease to fill the supply constraint they have opted to lay back and make unproportionate profits. Though their cost have not or marginal increase inpast couple of years. Let Mr.Ruppee do what Kamal nath would not like.Time to celebrate to be part of trillion club.
RE:The great indian ruppee trick.
by ASHOK on Apr 28, 2007 04:56 PM Permalink
I agree, we should not just devalue rupee for nothing. We should rather adjust surplus Dollar by buying more. And reducing Import duties on these imported goods, which we buy more.
One such thing is Crude oil ( If we buy it more and reduce Excise as well as customs on it) we will directly impact Inflation at home. We will increase domestic productivity by reducing cost of transporattion / it will reduce cost of production. That will impact both Cost of products with in India as well as exports.
Unfortunately Govt wants to spend this money in Malls where they will keep Luxury watches / cameras / imported garments / Sarawosky crytels That will do nothing but fill the pockets of ploiticians as they have investment in thses MALLS and imports. Where as these ploiticians can not take money out of Refineries / gas stations etc if petrol and Diesel prices are reduced.
Our ....ing FM & PM are playing with big game TO KILL our Economy which was contantly gained in BJP rule & from the day UPA comes into power we are facing historical changes in Share Markets & other Economical field, this now it has came to end of all these foolish game by hitting the HARD EARNED INCOME of POOR WORKERS, who are away from their families living in a worst life aboard particularly in UAE, GOD is there to look after these FOOLISH politicians , they will be punished by HIM lot
RE:Rupee vs Dollar
by om pandey on Apr 28, 2007 03:50 PM Permalink
How does it impact? More conversion rates make one feel higher earnings but with increased inflation you end up buying less.Appreciated ruppee will make one feel reduced earnings after curreny conversions,but actually it will moderate the inflation and you get cheaper what you bought earlier.Now the difference may arise based upon one's kind of investmentand savings.It would be interesting for you to compute the difference.I bet you gain in medium term.
EUR has depreciated a less than USD. Lets start using EUR as base or reference currency for next few years. After all, beoynd 2020 INR will be global reference currency :-)
RE:Let EURO be new reference currency
by Anantha Krishnan on Apr 28, 2007 04:02 PM Permalink
Precisely, let us change the base currency, if we are losing out on the dollar rate. In fact, prudent Indian businessmen with large scale international interests, hold their money in other currencies, so that the fluctuations do not affect them. Foreign Exchange dealings are all about riding the wave and the crust of different currencies. It is time for people who are cribbing to grow up and think out of the box.
RE:Let EURO be new reference currency
by ASHOK on Apr 28, 2007 08:20 PM Permalink
what rubbish you are talking about. To make INR as reference currency you have to first free float it. Indian currency is yet to be traded /available in International money exchanges. And you are showing dreams of being Global reference in 13 years. Anything is possible only if we take the right step first.
RE:Let EURO be new reference currency
by Vijay Shah on Apr 29, 2007 02:39 AM Permalink
FYI : Government is working on making INR fully convertible currency by 2009.
RE:All Blah Blah Blah
by parijat singh on Apr 28, 2007 03:40 PM Permalink
I think you're out of line. This is more of an economics/academic discussion. The world is more complicated than you think. And these measure might eventually help out the common man in the long run.
RE:RE:All Blah Blah Blah
by baranikumar mahadevan on Apr 28, 2007 03:58 PM Permalink
I am not sure. We have seen 60 years after Independence. During this currencies have appreciated and depreciated. But then this is the world of finance - everything fluctuates. Stocks, commodities,bullion, etc. All this time the question is does the common man have anything to gain. AKS is right in a way though it may be a parallel point of discussion. There is STILL poverty, crime, illiteracy, etc.
NRIs will definitely hold back their remittences as much as possible. There are still some places in world where the simple interest returns from Banks are more than that in India
RE:NRI s
by on Apr 28, 2007 03:55 PM Permalink
I agree with you. Myself being an NRI, is holding back my earnings of past 4 months in a private bank (HSBC) in this foreign country. I will wait for a couple of years to the maximum to decide to send to indian banks.
RE:NRI s
by Rajeev Rankawat on Apr 28, 2007 04:32 PM Permalink
I, too my self an NRI fell that the remitance to India shall come down in proportion of the rupee appriciation. I am also holding back the the forex, usually I would have remited to India.
RE:RE:RE:NRI s
by ASHOK on Apr 28, 2007 08:27 PM Permalink
You can permanently hold back your money in Dollar / Euro / GBP or what ever currency you want. I dont think India will be any more giving special treatment to NRI accounts anymore. That phase is now over. Things have changed. We have to move on. Face the reality.
RE:NRI s
by Sunil Dodeja on Apr 28, 2007 03:27 PM Permalink
Please name 2 such countries which have even half as stable a government as India does .Why does every decision have to be taken with NRI's in mind . Resident Indians have equal rights and interests on their life styles . If the rupee appreciates because of better performance of Indian economy , then so be it !!!
RE:NRI s
by nikhil raj on Apr 28, 2007 04:34 PM Permalink
Poor Dodeja, Do you really understand what is the article all about???Do you know result of this trend? Do you know how much foreign currency India receive in exports? Do you know with whome India is competing in export these days?...Come on man think logically before writing anything. Don't write just to please yourself or satisfy your understanding.
The biggest devaluation of Rupee happened on June 06,1966 when Sachin Choudhury was the Finance Minister.In 1991, the devaluation which RBI called a 'change in parity' took place on July 01 and July 03.The story goes that P V N R did not want the second devaluation on July 03 but Dr Singh could not get the then RBI Governor on line !The biggest appreciation would have happened if RBI had not protected Dollar/ Rupee at 31.37 for 28 months. The very critical level for Dollar/Rupee will be 43.35. For Rupee to depreciate, the level has to be braeched.
RE:Re devaluation
by ASHOK on Apr 28, 2007 08:15 PM Permalink
In 1966 TT Krishnmachari was Finance Minister. Who is this Sachin Choudhury !!! Any Choudhury ever as Finance minister was Choudury Charan Singh (1979-80). god Bless his soul. This man taxed TOOTH Paste and Tube light, in those days. Actually he never wanted poor to use tooth paste so he made it costly.
You can imagine such people ( monkeys) as Finance Ministers and calling them selves Massiah of Poor/farmers. And sent his son abroad for higher studies !!
RE:Re devaluation
by Samudraniel Dasgupta on Apr 28, 2007 10:04 PM Permalink
Sachin Choudhury was the founder editor of Economic and Political Weekly. His brother Shankha Choudhury was a well known sculptor. Perhaps you are checking wikipedia. Do a google for Sachin Choudhury Finance Minister
RE:NRI
by on Apr 28, 2007 03:58 PM Permalink
For NRI's wait and wait till it depreciates back. Every currency excluding USD/GBP will appretiate and depretiate(to a considerable extend) in a period of 5 to 10 yrs. So have patience.
The rising rupee should bring a chear to Resident Indian Population . This is the only indicator that our economy is doing well . It raises our level a bit , in the eyes of NRI . It also makes it possible for "we the resident Indians" to have some buying power in the international market - now the goodies are cheaper for us . So lets enjoy the myth while it lasts . Our every sleeping government will definitely wake up and spoil the party - one way or the other .
RE:Rising Rupee a pleasure
by rahul choudhary on Apr 28, 2007 03:16 PM Permalink
Dooooodeja, first understand what is the effect of currency fluctuations, then give ur opinion
Iam an expatriate moved to gulf recently. At the outset, I am really happy that our currency is doing well.
There are certain situations where the articles describe only about travel and going abroad, it does not provides a deep insight on the circum. it is going to exploit.
I feel that inflation at present may come down, real estate prices will go down in all metros. Wealth sharing will be equal by all people.
RE:Rising Rupee a pleasure
by nikhil raj on Apr 28, 2007 04:28 PM Permalink
Poor Dudejs, Do you really understand what is the article all about???Do you know result of this trend? Do you know how much foreign currency India receive in exports? Do you know with whome India is competing in export these days?...Come on man think logically before writing anything. Don't write just to please yourself or satisfy your understanding.
What about we, the expats working in the countries outside India? Every year we pump in huge amounts of foreign exchange by way of remittances and thus contribute to the national economy in a big way. With less number of rupees repatriated against each Dinar or Dirham, our families back home do get hurt. The case is quite acute in case of workers,labourers and artisans; who earn less, save each penny and send the savings every month to their families in India.I am sad to note that none of the articles, none of the discussions on Indian TV channels even mention the negative effect on expatriates.People should not forget that the foreign exchange crunch of 1991 was reduced with the help of us, the expats! Aniruddha
RE:The great Indian rupee trick
by Rocker on Apr 28, 2007 02:54 PM Permalink
You are righMr. Aniruddha Bhide, I completley agree with you on this aspect, did anyone give heed to this, does the government really care....its been a shocking week
RE:The great Indian rupee trick
by paresh gupta on Apr 28, 2007 03:24 PM Permalink
did we or govt sent her to Dubai or outside the cuntry. She should have lived in India.
RE:The great Indian rupee trick
by beni thamarasseril on Apr 28, 2007 03:47 PM Permalink
yaar paresh, who are we to send him to dubai. If the govt sends him, then he gets paid in Rupees.
Even then try to understand what he is saying. There are workers in the middle east who earn less than Rs.15000. Lets take the example of Kuwaiti Dinar. 1 KD was approx(for calculation purpose) Rs150. So if this indian worker earns KD100 it means Rs15000.
After taking into account their expenses, they might just have KD60 in their hand. Now while this KD60 earlier got him Rs9000 now it gets him Rs8340(1KD=Rs139 approx).
For those who have it in greener pastures in the middle east, its ok, but what Aniruddha is refering to is the poor workers who do have to slog day in and day out just so that their children will have some better education and not end up like them. He is referring to their plight.
RE:The great Indian rupee trick
by pradeep kumar on May 05, 2007 02:01 AM Permalink
Poor worker in Midlle east. Then come back to india. INR is appreaciated. U dont need to work outside for living..
RE:The great Indian rupee trick
by latesh devnani on Apr 28, 2007 03:47 PM Permalink
Good Reply , This idiots leave the country and crib about rupee aprreciating hurting their remittances
RE:The great Indian rupee trick
by ASHOK on Apr 28, 2007 04:24 PM Permalink
You guys are IDIOTS. Annirudha is 100% correct. I have seen Indians struggling and trying to save every Dinar / Dhiram /Rial to send home to their near and dears back home. can Govt. Give them equivalent earning back home. I tell you if they get equivalent job back home NO ONE WILL LIKE TO MOVE OUT. Try to understand YOU SICK MORONS.
RE:Outsource to Africa.
by rahul choudhary on Apr 28, 2007 03:09 PM Permalink
Bhaiya ji, africa is coming up in big way. apne aap ko hi smart mat samjho. Yahan jitne log English samajhte hain India mein bhi nahi samajhte hoge. So wake up man.
