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Each one of us likes to travel hassle free. Hence before we pack our travel bags to get set and go to a foreign destination, it is important to ascertain a few aspects. For instance, considering the rate of foreign exchange is a major concern that we must consider while planning our international holidays. After all we don’t want to get ripped off while paying for services abroad, do we? Global travelers therefore, must be cautious about choosing services when they travel internationally. Appropriate knowledge about forex can help them fetch better deals abroad.
About Forex
Foreign exchange is a major concern for people visiting foreign countries. What most of us fail to realize is that the rise and fall of currency exchange rates can have a huge impact on international travel and tourism. For starters, one should know the basic of foreign exchange like when your home currency is stronger you can spend more in the visiting country and vice-versa. With a more powerful home currency you can travel in the foreign locale for cheaper price.
Apart from being important for travelers traveling abroad this concern has a significant impact on a country’s foreign exchange reserve as well. According to recent reports, foreign exchange earnings from tourism in India alone is predicted to increase to USD 26 billion dollars by 2015 from the current USD 20 billion dollar. This foreign exchange earned from tourism sector is critical to combat the escalating current account deficits. No doubt the government of India is adapting measures like easing the visa norms and entering into agreements with other countries to boost its tourism sector.
Today when India’s foreign exchange reserve has increased for the third week in a row, adding USD 1.9 billion dollars, one cannot deny the contribution of tourism and hospitality sector for the same. In order to make significant strides in its tourism sector, India endeavoured to improve its share in international tourist receipts during the course of past decade thereby, positively affect foreign exchange in India. You can also gauge the importance of tourism in the country from the fact that India emerged as the fourth biggest foreign exchange earners during 2012 with over USD 17 billion dollar earnings.
Therefore, one can say that forex is as critical concern to the traveler as it is to the economy.
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