All,
One of the obvious factors that helps us to think about R2i in fairly short order (7-12 years based on averages I have seen on this forum) is the fact that the exchange rate between the $ and INR helps us accumulate a lot more money in short order compared to working in India (to keep things simple I ignore that many of our peers in India might be equally if not in a better position financially given the real estate boom in the last 5-7 years).
So my question is if tommorow the Indian Gov decided to hard peg the INR to the $ at the rate of 1$ = 10 INR (versus between 38 and 52 in the last 2-3 years) how attractive would it be to work in the US and look to save to R2i.
I would be especially curious to hear from people who would still prefer the US irrespective of however unfavorable the exchange rate got.
Thanks.
If 1 USD = 10 INR how attractive would be the US
If 1 USD = 10 INR how attractive would be the US
I would be more worried about India than US. With US its military machinery will be in full gear.
If 1 USD = 10 INR how attractive would be the US
oasis138;269670 I would be especially curious to hear from people who would still prefer the US irrespective of however unfavorable the exchange rate got.
I am sure there will always be folks, particularly from magenta corner, who would prefer unfavorable exchange rate of currency to unfavorable exchange rate of words with in-laws :)
If 1 USD = 10 INR how attractive would be the US
I agree that there would be massive repercussions for exporters if such a scenario plays out and hence from a probability perspective its highly unlikely that the Indian Gov would make such a move... However I am more curious in getting to understand better how much the current exchange rate is a factor in people's decisions to come to work in US/ settle in US / R2i.
Thanks.
Thanks.
If 1 USD = 10 INR how attractive would be the US
Its not only currency or else lot of us would be in Middle east. Its also culture, freedom, hype, Hollywood, MacD, value of US exp/education back home, no second class citizenship treatment etc
If 1 USD = 10 INR how attractive would be the US
Oasis138, you've gotta be kidding.
Seriously, even when 1$ = 45 Rs. all our life savings isn't enough to buy good flats in big metros and the rampant inflation in India if 1$ = 10 Rs. going back to India would be like strangulating the entire family.
Seriously, even when 1$ = 45 Rs. all our life savings isn't enough to buy good flats in big metros and the rampant inflation in India if 1$ = 10 Rs. going back to India would be like strangulating the entire family.
If 1 USD = 10 INR how attractive would be the US
fair enough...but again my question is how important of a factor is the exchange rate..
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PeterGriffin
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If 1 USD = 10 INR how attractive would be the US
I would be too poor to go back to India. The rich people would live in India and the poor would live here.
People in India, would slant their head and give us poor US folks their sympathies and hope that "someday" we would do better and live in India.
People in India, would slant their head and give us poor US folks their sympathies and hope that "someday" we would do better and live in India.
If 1 USD = 10 INR how attractive would be the US
oasis138;269708fair enough...but again my question is how important of a factor is the exchange rate..
It's a no brainer. Huge factor.
IMO, even India can't afford let the Rs. appreciate against the $ to that extent for another 30 to 40 years. We still have a long way to go to even think about getting to that levels.
If 1 USD = 10 INR how attractive would be the US
Oasis,
Finance is not an issue for me. I retired in USA at age 47 and am living here and will not R2I.
Coming to the issue of exchange rate If the rate of of exchange went to 10 Rupees to the dollar, then status quo in other areas would be impossible. Exchange rates are not arbitrary, they are a reflection of relative inflation, cost of goods etc. If exchange rate became Rs. 10, then prices of goods will have to drop significantly or India would face a depression like one they have never seen before. So if prices of goods drop and rupee appreciates, the net attractiveness for R2I from a financial perspective would be the same.
If your query on the other hand is that all other cost of goods, living etc being the same would one R2I if exchange rate is 10Rs, then that query worded other way is basically if you lose 80% of your wealth today in some accident, stock market, etc would you R2I. It is too hypothetical detached from reality.
Only reality is that cost of living in rupees is connected to the exchange rate such that lower inflation and lower cost of living in rupees will go hand in hand with rupee appreciation.
Finance is not an issue for me. I retired in USA at age 47 and am living here and will not R2I.
Coming to the issue of exchange rate If the rate of of exchange went to 10 Rupees to the dollar, then status quo in other areas would be impossible. Exchange rates are not arbitrary, they are a reflection of relative inflation, cost of goods etc. If exchange rate became Rs. 10, then prices of goods will have to drop significantly or India would face a depression like one they have never seen before. So if prices of goods drop and rupee appreciates, the net attractiveness for R2I from a financial perspective would be the same.
If your query on the other hand is that all other cost of goods, living etc being the same would one R2I if exchange rate is 10Rs, then that query worded other way is basically if you lose 80% of your wealth today in some accident, stock market, etc would you R2I. It is too hypothetical detached from reality.
Only reality is that cost of living in rupees is connected to the exchange rate such that lower inflation and lower cost of living in rupees will go hand in hand with rupee appreciation.