I have always been wondering as to why Indian exporters quote in US Dollars instead of in home currency INR. If they quote in INR then a strong rupee should not affect them. Most of the exporters across the world quote in their home currency and not in USD.
RE:Rising Rupee
by Sugato Dutt on Oct 03, 2007 10:07 PM Permalink
Dear Prakash, Quoting in one's home currency is only viable when your home currency is freely convertible. An overseas importer will look for a fixed cost for the products he imports, in we quote in Rupees he has to work out the exchange rate prevailing at the time he makes his remmittance. Big importers do not like or want to go through so much trouble. They just want to instruct their bank to wire X amount of Dollars or Euro and not worry anymore about it. If we want to keep customers, we have to quote in convertible currency. Things in real life are much different than the ideal situation.
RE:Rising Rupee
by Ajit Birdi on Oct 03, 2007 10:41 PM Permalink
There is no need to worry. the bank converts the dollar on the day of transaction and still pay the company in rupees. I do that regulerly and encounter no problems.
