Won up: Rupee gains currency in South Korea
After growing from strength to strength during 2007, the rupee may be losing ground against the dollar now, but the Indian currency has won a vote of confidence in South Korea.
NEW DELHI: After growing from strength to strength during 2007, the rupee may be losing ground against the dollar now, but the Indian currency has won a vote of confidence in South Korea. Though the rupee is not convertible, foreign exchange dealers in South Korea are accepting payments in the Indian currency.
We are not talking of shady grey market transactions here; forex dealers are formally displaying an exchange rate for the rupee and openly accepting the Indian currency for selling dollars, pounds or euros, apart from the South Korean won.
���There is no need for Indian tourists to convert Indian money into dollars if they are visiting Korea. Currency changers in Korea are selling won against rupees,��� travel industry sources said. Hong Kong is the only other place where the rupee is openly accepted by currency changers.
The rupee has currency in several other places like the Gulf region, Sri Lanka and Singapore, but transactions are done in the grey market. Since the rupee is not fully convertible, the only place outside India where it has official recognition is Nepal, where Indian currency in smaller denominations is accepted but Rs 500 notes are not valid due to fear of counterfeit currencies.
The advantage to tourists is in terms of saving on conversion of the rupee to dollar, which is avoided by directly buying the won. Eager to attract Indian tourists, the South Korean government is not raising eyebrows about ���convertibility��� of the Indian currency.
The Reserve Bank is also a silent spectator since it is felt acceptance of the rupee is recognition of its strength and, by implication, the Indian economy.
How the Korean dealers would convert the rupees into currencies of their choice has been gladly left to the imagination of the people concerned.
While the rupee convertibility could be an additional attraction for Indian tourists visiting South Korea, there is another sweetener on cards. Indian tourists might soon get visa-on-arrival in South Korea, on the lines of Mauritius, Thailand, Sri Lanka and Hong Kong.
The facility would be provided on reciprocal basis and the two governments are negotiating now, industry sources said. In other words, South Korean tourists would get visa-on-arrival in India once the pact goes through.
The South Korean authorities are leaving no stone unturned to get more Indian tourists.
South Korea is one of the safest places for foreign tourists and you can casually walk into a cafe at midnight for a cup of coffee, he said. The Korea Tourism Organisation is also promoting the Korean spring season���s pleasant weather in May-June for Indian tourists to escape from searing summers.
We are not talking of shady grey market transactions here; forex dealers are formally displaying an exchange rate for the rupee and openly accepting the Indian currency for selling dollars, pounds or euros, apart from the South Korean won.
���There is no need for Indian tourists to convert Indian money into dollars if they are visiting Korea. Currency changers in Korea are selling won against rupees,��� travel industry sources said. Hong Kong is the only other place where the rupee is openly accepted by currency changers.
The rupee has currency in several other places like the Gulf region, Sri Lanka and Singapore, but transactions are done in the grey market. Since the rupee is not fully convertible, the only place outside India where it has official recognition is Nepal, where Indian currency in smaller denominations is accepted but Rs 500 notes are not valid due to fear of counterfeit currencies.
The advantage to tourists is in terms of saving on conversion of the rupee to dollar, which is avoided by directly buying the won. Eager to attract Indian tourists, the South Korean government is not raising eyebrows about ���convertibility��� of the Indian currency.
The Reserve Bank is also a silent spectator since it is felt acceptance of the rupee is recognition of its strength and, by implication, the Indian economy.
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How the Korean dealers would convert the rupees into currencies of their choice has been gladly left to the imagination of the people concerned.
While the rupee convertibility could be an additional attraction for Indian tourists visiting South Korea, there is another sweetener on cards. Indian tourists might soon get visa-on-arrival in South Korea, on the lines of Mauritius, Thailand, Sri Lanka and Hong Kong.
The facility would be provided on reciprocal basis and the two governments are negotiating now, industry sources said. In other words, South Korean tourists would get visa-on-arrival in India once the pact goes through.
The South Korean authorities are leaving no stone unturned to get more Indian tourists.
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Shopping facilities are being spruced up, conference infrastructure is being promoted and availability of Indian vegetarian food in South Korea is being highlighted. Korea Tourism Organisation has opened an office in New Delhi. ���Our target is to get at least 75,000 Indian tourists into our country,��� said Ju Min Hong, V-P of the organisation.South Korea is one of the safest places for foreign tourists and you can casually walk into a cafe at midnight for a cup of coffee, he said. The Korea Tourism Organisation is also promoting the Korean spring season���s pleasant weather in May-June for Indian tourists to escape from searing summers.
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We have a number of beaches, hills, amusement parks and cultural heritage which Indian tourists would find interesting, said Mr Hong. The Korean lifestyle would also be fascinating for Indian tourists, he added. Following Gangster, which was shot in the country, many Indian producers are exploring the possibility of making movies in South Korea.Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
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