Well, it is currency of the subscription I will be talking about. 19.95 USD, for one year subscription. Typical of the Indian mentality, I went ahead to convert it into INR. Ummm.... well 19.95*40=798~800 Indian bucks! for 1 year! Now, this is cheap...
What I mean is that USD has definitely become cheaper in the last few months. Heard a lot about this in the media, and it felt good to feel it actually! Thinking further, I realized that it is now cheaper to buy in USD (Imports are cheaper). But then the flip side, which the media is talking all about, exporters are taking a hit on their profit margins, since most of our export bills are invoiced in USD.
Earlier the RBI used to intervene, and deliberately purchase USD from the forex markets to keep it costly. It would pump in the Indian currency into the market. In the recent past it has sort of "washed its hands off". It seems, it wants INR to appreciate against USD. If we compare the exchange rate of China with USD ... it is at around 7 yuan (CNY) per dollar. Does this attract the foreign investors more there than in India?
Well, as an Indian, it feels good that our currency is gaining strength. We should not be afraid of it. The exporters (including the Indian I.T. organizations) should strive for more business to offset this deficit in their profit margins. It is more important for us to get our Oil cheaper (The Oil Pool deficit will be less) which impacts the larger masses of the country, than to have my quarterly bonus above 100%!!
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