On 20 August 2011 00:30, Roland Francis <[email protected]> wrote:
> Gabe, yours is an opinion I disagree with totally. > > Your advice seems to be directed at overseas Goans. I will show why it's a > bad idea to invest in Rupee FDs in any Indian bank, whether the purpose is > to eventually spend the money in India or repatriate it to its origin. > > For example SBI offers 9.25% for a 2 year term. > The Indian inflation rate (if you believe official figures) is currently > 8.62%. That gives an effective yield of 0.63% on your investment. That > would > not please anyone. > > RESPONSE: My Comment was for those in Goa and Gulf Goans intending to return to India. Exchange risk is a big factor, yes I agree. In Sterling terms the Rupee has appreciated from over 85 Rs to at one point under 70 Rs. The Canadian Dollar has done well, very well but that's on the back of being a commodity currency, same as the Aussie Dollar. These are cycles and cannot continue indefinitely. I remember very well years ago when the Swiss Franc was getting so strong that the Swiss Central Bank introduced negative interest rates for Holders of SFR. It may do this again if there are no options left on the table. Lastly I have faith in the economy of India and China, can't put a good dog down. The depreciation we have seen is the outflow of funds invested in the stock market. For perhaps the next three of four years - see sideways movement in the West and a gradual improvement in the BRIC countries while all the adjustments needed take place. > -- > DEV BOREM KORUM > > Gabe Menezes. > > -- DEV BOREM KORUM Gabe Menezes.
