Today I am introducing two characters, Madariwala and Jamoore. They will help us in explaining concepts.
Jamoore: Ustad, China says lower Yuan will help exports. I can't understand this?
Madariwala: What is there to understand this? A country takes decision that suits best to him/her. You know some countries are him and some are her. Or they want to be called that way. No gender discrimination in my show. Do you understand?
Jamoore! China is known for exporting its goods/produce. When you export, you get dollar! Everybody loves dollar. If your nation's currency will be weak, your earning will be more. Money is honey, honey is money.
My friends working in other countries are sending dollars to their families in their native country. They become happy whenever Rupees slides in terms of dollar. It doesn't mean they are less patriot!
Jamoore: What is sliding of Rupees in respect of dollar?
Madariwala: Listen. You live in India. Do you remember we imported this magical stick five year ago? How much it cost? We paid Rs. 250 for five dollars i.e. one dollar was equal to Rs. 50.
The price of stick is still five dollar, but today my competitor, idiot new madariwala opposite this lane, paid Rs. 320. i.e. one dollar is now Rs. 64.
What do you see here? Import of the goods is not favourable when local currency slides. Government encourages export when it allows local currency to slide. Understand?
Jamoore: a little master
Madariwala: Good, even learning a little is better than not trying to learn. Keep it up.
Jamoore: Ustad, China says lower Yuan will help exports. I can't understand this?
Madariwala: What is there to understand this? A country takes decision that suits best to him/her. You know some countries are him and some are her. Or they want to be called that way. No gender discrimination in my show. Do you understand?
Jamoore! China is known for exporting its goods/produce. When you export, you get dollar! Everybody loves dollar. If your nation's currency will be weak, your earning will be more. Money is honey, honey is money.
My friends working in other countries are sending dollars to their families in their native country. They become happy whenever Rupees slides in terms of dollar. It doesn't mean they are less patriot!
Jamoore: What is sliding of Rupees in respect of dollar?
Madariwala: Listen. You live in India. Do you remember we imported this magical stick five year ago? How much it cost? We paid Rs. 250 for five dollars i.e. one dollar was equal to Rs. 50.
The price of stick is still five dollar, but today my competitor, idiot new madariwala opposite this lane, paid Rs. 320. i.e. one dollar is now Rs. 64.
What do you see here? Import of the goods is not favourable when local currency slides. Government encourages export when it allows local currency to slide. Understand?
Jamoore: a little master
Madariwala: Good, even learning a little is better than not trying to learn. Keep it up.
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