Goans cash in on rupee fall
Published on: November 25, 2011 – 01:49
BY SHOMA PATNAIK | NT
PANAJI: The present rupee downslide is bad news for the Indian economy and importers. But for many remittance-rich residents of the state it is an unexpected bonanza that is making them smile all the way to the bank.
In the last few days, with the Indian rupee coming under extreme pressure vis-à-vis the US dollar, the buzz is that, quite a few residents living on transfers of foreign currency from relatives abroad are in a profit taking mood, offloading their cache for some really needed extra bucks in these inflationary times.
Goans are heading to their trusted jeweller for exchange, who besides his traditional occupation of selling gold also doubles as their favorite money trader. Next in choice are the numerous official or the unofficial money changers. While banks that are also authorised to buy or sell foreign currency, are probably last on the list. Reasons are obvious: jewellers that are in the currency swap business are currently offering the best rates of `52.05 per US dollar, the rate from the licensed money changers being lesser at around `51.70- `51.50, and from the banks another 20 paise lower.
Bulk of the exchange, it is learnt, is in the most widely held or traded currency viz. the US dollar, followed by the pound sterling, and some of it is also in euros as Goan NRIs’ remittances from the region are increasing.
Although, most jewellers in the business of exchanging currency refuse to come on record to talk of their lesser-known business, in the current scenario of a weak rupee, all the participants in the state money changing business are happy as volumes for them is high.
“We are witnessing lot of residents taking out their currency holdings for exchange since these are the best rates seen after a long time,” said Mr Marvhino Rodrigues, territory manager, Weizman Forex, Calangute.
“Our income during this time of the year usually picks up because of the tourist season. However, it is locals who are fueling our purchase of currency in recent days. As against an expected volume of Rs 1 crore/ per day, we are actually doing `2.5 crore/ per day, purely on account of the appreciating dollar,” Mr Rodrigues informed.
Agreeing with Mr Rodrigues, Mr Jorge Bravo da Costa, country head, HDFC Bank said, “People are capitalising on the increasing dollar, even some companies with foreign currency holdings.”
The official money changers in fact, have a bit of advice for residents wanting to take advantage of the current exchange rates.
“People have to scour the operators in the field to get the best rates, and they also have to bargain. Since even among the bigger companies in the trade, the rates vary,” they said.
“It would be also advisable to offload the currency holdings in segments because you never know at what rate the rupee will drop down to,” the said.