India

AG47

Is the situation in India going to be deflationary for the Rupie? All those large notes that won't be exchanged before the deadline, or the owners have used up their allowance and have no way to change them or spend them.

So after the deadline, in 2017 the 'money' supply of India will have contracted by a large amount? This means the units of currency stil in supply will have greater demand and thus be worth more.

The real definitions of deflation and inflation is a contraction or expanding of the currency supply, is it not?

movilogo

How does it affect UK?

mystic_trev

The whole things a bloody pain and I'm off there in two weeks time. The latest thing they've done is clamp down on the amount of foreign currency you can now change. You're allowed to change r5,000 from sterling a week, which amounts to about £62 :rotfl:and have your Visa page marked with the appropriate day. Add to that you can only withdraw a max of r2,000 a time from an ATM and it's an utter shambles.

SailorSam

movilogo wrote: »

How does it affect UK?

And what has it got to do with the house price forum ?

vivatifosi

There's an interesting article about this, here:

https://geopoliticalfutures.com/indias-money-maneuver/

In answer to your question Sam, it falls under the discussing economies part of this sub forum. There's a long tradition here of discussing economies other than the UK.

AG47

vivatifosi wrote: »

There's an interesting article about this, here:

https://geopoliticalfutures.com/indias-money-maneuver/

In answer to your question Sam, it falls under the discussing economies part of this sub forum. There's a long tradition here of discussing economies other than the UK.

It has everything to do with money and the economy it's stupid to ask what has it got to do with this forum.

I think a lot of people around the world that kept cash under the mattress are now thinking twice

AG47

So India shows cash in hand is not safe, it can become worthless overnight.

Italy at the moment, and Cyprus/Greece and others show currency in the bank is not safe and can become worthless overnight...

What is safe these days? Other than gold and silver, what is the safest? Gold can be made illegal again like it was in my grandfathers time.

Stocks and shares are way overvalued, property is way overvalued. Where can an investor find value and low risk?

Ballard

mystic_trev wrote: »

The whole things a bloody pain and I'm off there in two weeks time. The latest thing they've done is clamp down on the amount of foreign currency you can now change. You're allowed to change r5,000 from sterling a week, which amounts to about £62 :rotfl:and have your Visa page marked with the appropriate day. Add to that you can only withdraw a max of r2,000 a time from an ATM and it's an utter shambles.

I'm in India now and it is a real pain. Many ATMs are permanently closed and those that do open (State Bank of India are best) have queues of around 40 minutes. Once you get hold of your R2,000 note you have to try to spend it somewhere where they have change which isn't particularly easy when the next highest note is R100.

My advice is to bring a credit card (preferably a good travel one) as they're fairly widely accepted nowadays. I'm currently in Sikkim which isn't a tourist hotspot so things could be vastly different elsewhere ( it I doubt it).

Don't expect to exchange any Sterling once you leave the airport. Money changers simply don't have the Rupees to sell. I've tried in banks but they just say to return later. Returning later is pointless as they run out of cash by then.

Most importantly, though, don't let it get to you. You'll still have a fab time but will need to queue every now and then.

Electrum

PAYDAY WOES, RUPEE LOWS

On the evening of November 8, 2016, Indian Prime Minister Narendra Modi made the shock announcement that all 500 and 1000 rupee notes would immediately cease to be legal tender.

For the majority of the Indian workforce, today is their first payday since that announcement. With a shortage of the new 2000 rupee notes, banks are facing a new crisis.

http://bitcoinist.com/indias-banks-payday-demonetization/

Ballard

I'm back in Blighty now and can advise that it's still shambolic. One might have expected cities to be better prepared than the towns but Kolkata had plenty of empty ATMs and queues for those machines with cash as well as at branches.

I gave up trying to exchange my Sterling but I saw no evidence that foreign exchange was possible. I would repeat my advice to take at least a couple of cards and use them wherever possible. Cards are accepted at many more places than when I last went but we had to ask restaurants and bars before we ordered just in case.

Obviously, taxis, rickies and street food are solely cash based so you need to withdraw a R2,000 note and then try to change it for R100s.

It did start to get on my wick towards the end. Particularly yesterday when we were about R80 short for the cab to the airport so I had to hunt around for an ATM and then queue. We did manage to spend the excess cash that evening rather than putting a meal on my card so financially it was fine. Just a pain to have had to spend another hour of the trip doing something that wasn't exactly a pleasure.

mystic_trev

Ballard wrote: »

I'm back in Blighty now and can advise that it's still shambolic. One might have expected cities to be better prepared than the towns but Kolkata had plenty of empty ATMs and queues for those machines with cash as well as at branches.

I gave up trying to exchange my Sterling but I saw no evidence that foreign exchange was possible. I would repeat my advice to take at least a couple of cards and use them wherever possible. Cards are accepted at many more places than when I last went but we had to ask restaurants and bars before we ordered just in case.

Obviously, taxis, rickies and street food are solely cash based so you need to withdraw a R2,000 note and then try to change it for R100s.

It did start to get on my wick towards the end. Particularly yesterday when we were about R80 short for the cab to the airport so I had to hunt around for an ATM and then queue. We did manage to spend the excess cash that evening rather than putting a meal on my card so financially it was fine. Just a pain to have had to spend another hour of the trip doing something that wasn't exactly a pleasure.

Thanks for the update Ballard.

This will be my 5th trip to India. Previous trips have been a month or so, however this is a short trip, there and back in a week, so shouldn't need many rupees. I'm going to watch the last Test in Chennai, and I've paid for pretty much everything upfront, including the Tickets for the Cricket. A five day pass in an air-conditioned box for the princely sum of £46!