The current conversion rate of Dollar to Indian Rupees is fluctuating between 42 to 43 since the past few weeks and the exporters seem an extremely confused lot! Some small timers are losing their cool while some are in two minds about converting their earned dollars. And we, handling international trade, are at the receiving end for all no fault of ours!
Suddenly all exporters are questioning us - why did we convert their foreign currency (all foreign currency is getting weaker against the rupee)? Even those with approved special rate in our records are complaining. If we had to take the permission of each and every receiver of Inward remittance before crediting their accounts (we receive several hundreds of credits in a day!), we would never be able to complete our work! Some HNW (high net worth) and corporates clients ask for rates everday and hold their credits hoping that the next day it will be better! But after a few days, convert and take the credit. The ones who had booked forward cover (contract) at good rates are smiling coz they're still enjoying the benefit of old rates! The smarter ones take credit in their EEFC (Exchange Earners Foreign Currency) account. This way they can use their foreign currency at no exchange loss and convert it when market is favourable.
We, common people, can atleast think that a trip to the US / Europe will eventually become cheaper and affordable in the future! (Wishful thinking!)