Down down, deeper and down...
When I arrived India was gearing up for Diwali, the 'festival of light', a celebration involving gifts, sharing meals and exploding large amounts of firecrackers. But the firecrackers weren't the only thing exploding as Sensex, India's stock exchange, hit the 20,000 mark for the first time ever.
India's economy is booming and it has no problems justifying its position in the 'BRIC' (Brazil, Russia, India & China) group of future power nations, who are already muscling in on the traditional super economies. Yet I don't think the Sensex's record high made it on to many pages or websites around the world- perhaps because they're all too busy reporting on the continuing demise of the dollar...
This weekend's IHT ran a cover story on the difficulties faced by US expats in Europe and Asia who are dependent on dollar salaries, pensions or client bases and gave plenty of examples of belts being tightened or sticks upped and moved to countries where the living costs were lower. Whilst India and its BRIC allies become richer the dollar earning expats are significantly poorer now than they were a year ago, and at present there are few glimmers of hope on the horizon.
I noticed back in 2004 when I was last in India that Euros and Pounds were easier to change than dollars and saw further proof of the situation in S. America earlier this year when Euros, Pounds and even Swiss Francs were prefreable to dollars. For this latest trip I made the decision to travel only with Euros, a decision the Indian government backed up by refusing to accept dollar payments for entry to many of the countries tourist sites:
When I arrived India was gearing up for Diwali, the 'festival of light', a celebration involving gifts, sharing meals and exploding large amounts of firecrackers. But the firecrackers weren't the only thing exploding as Sensex, India's stock exchange, hit the 20,000 mark for the first time ever.
India's economy is booming and it has no problems justifying its position in the 'BRIC' (Brazil, Russia, India & China) group of future power nations, who are already muscling in on the traditional super economies. Yet I don't think the Sensex's record high made it on to many pages or websites around the world- perhaps because they're all too busy reporting on the continuing demise of the dollar...
This weekend's IHT ran a cover story on the difficulties faced by US expats in Europe and Asia who are dependent on dollar salaries, pensions or client bases and gave plenty of examples of belts being tightened or sticks upped and moved to countries where the living costs were lower. Whilst India and its BRIC allies become richer the dollar earning expats are significantly poorer now than they were a year ago, and at present there are few glimmers of hope on the horizon.
I noticed back in 2004 when I was last in India that Euros and Pounds were easier to change than dollars and saw further proof of the situation in S. America earlier this year when Euros, Pounds and even Swiss Francs were prefreable to dollars. For this latest trip I made the decision to travel only with Euros, a decision the Indian government backed up by refusing to accept dollar payments for entry to many of the countries tourist sites:
'The Ministry of Culture has begun insisting that tourists visiting the country’s monuments, including the Taj Mahal, pay the entrance fees in rupees rather than in dollars. Entrance to many sites for foreign tourists is priced in dollars and then converted to rupees, but the ministry has been losing tourism revenue as the dollar slid more than 12 percent this year against the rupee.' NY Times, 17 Nov 07
It's not just the Ministry of Culture that's refusing dollars... I heard a tale of beggar in Kolkata turning up their nose and walking away from a woman who offered her dollar bills!
As some Indian's and expats take all necessary measures to protect their revenues those earning Pounds and Euros are cashing in on their currencies strength and flexing their purchasing power by jetting off to the US to do their Christmas shopping:
As some Indian's and expats take all necessary measures to protect their revenues those earning Pounds and Euros are cashing in on their currencies strength and flexing their purchasing power by jetting off to the US to do their Christmas shopping:
'“Your money just keeps on going,” said Ms. Dragonette, awed at the buying power of her British pounds, each worth $2.03 at the time.
The dollar was so weak, said her cousin, a 27-year-old nurse, “We had trouble spending all our money.” Add a new superlative to New York’s long list: world’s most fabulous discount mall.
With the dollar near its lowest rate against the pound in 26 years, and its lowest rate against the euro ever, many Europeans are looking at the United States the way some Americans have long viewed Latin America and the Caribbean and, once upon a time, Europe — a cheap place to flex their strong currency. ' NY Times 15 Dec 07
At least the US hotel and retail economy would appear to be profiting from the dollars doldrums...
Who knows how long the dollar will continue to devalue... in the meantime if you're thinking of traveling to India, or anywhere else on earth for that matter, forget those greenbacks - they're not worth the paper they're printed on!
Who knows how long the dollar will continue to devalue... in the meantime if you're thinking of traveling to India, or anywhere else on earth for that matter, forget those greenbacks - they're not worth the paper they're printed on!
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