International Business

Most Indians are opting for a UAE tour these days more than any other foreign country. This is understandable since it offers Burj Khalifa, Palm Islands, Miracle Garden and many more outstanding modern-day wonders. That said, a place like Dubai is one of the most important places to go for an investor as well. 

No matter what reason there is for you, the impact of the Middle East is undeniable right now. When talking about taking a trip abroad, the foreign exchange rate is a decisive aspect. You can’t have a trip abroad without converting your currency to another. And when it comes to the UAE, their official currency is Arab Emirate Dirham ( AED).

To travel to the UAE, you need to know more about AED to INR exchange rates. Read below to discover the impact of foreign exchange and how it works.

Why foreign exchange is important?

Currency exchange is immensely significant when it comes to international business and travel opportunities. It means the transformation of another country’s official currency to another foreign country’s. The currency exchange rates tend to change over time, sometimes it increases or decreases. 

When you are travelling from one country to another, you need to exchange your cur 

Let’s say that you are travelling from India to Dubai. In that case, you have to convert the Indian rupee to United Arab Emirates Dirham. 

Why do currency exchange rates don’t stay the same? 

Whenever you’re set to visit another country, you must convert your currency to the other. However, the rates don’t always remain the same. The average exchange rate of AED to INR is INR 22. Certain factors determine the changing rate of foreign exchange.

Political stability or instability: Economic stability of a country depends on the stability of the Government. No foreign investors want to invest in a country that’s on a brink of ruin. So, the exchange rates will decrease because of the unstable political situation.

Inflation: Inflation means a situation when the prices of general goods of the country increase to an extent. If this happens in any country, then the currency value of that country will decrease. Likewise, when the inflation level is low, then the currency value will increase.

Debt: A time when the government is in debt, then no foreign company would invest in them. This eventually results in inflation and the currency value decreases.

Interest rates: When the interest rates of a country increase, then the value of the currency will increase as well. Similarly, when the value of the rupee falls in India, the deposit rates are generally increased by the government. 

Impact on currency exchange rates on business and travelling 

Currency exchange rates do not remain the same for a long time. You’re bound to face problems when this happens. So, you should learn more about the impact of it to stay a few steps ahead.

Delaying your tour to a foreign country

When you plan a tour to Dubai or anywhere in the UAE, you have a specific budget plan in mind. What if the value of the rupee starts to decrease? In that case, you have to pay extra to buy the same tour package. This can create a lot of problems in your travel planning. In case you are not yet ready to spend more, you must delay your journey for the moment.

Less profit and more loss in a business

In case you own a business that has clients in the UAE, fluctuations in exchange can wreak havoc. When you have foreign clients, money transfers are mostly operated by draft or wire transfer. However, you could end up without a profit if the value of INR decreases in front of AED.

Spending more to buy an online product 

These are progressive times when you often purchase goods from a foreign company online. Suppose you want to order a product that costs around 50 AED. This means you have to spend approximately INR 1,100. However, by the time you ordered the same product, the value of INR somehow decreased. And now you have to pay some more for the same product.

Understanding the impact of AED to INR exchange rates is important when you are interested in the Middle East. Foreign exchange is not a big deal nowadays as it is mandatory to plan a solid travel experience.

Thomas Cook helps you convert AED to INR in a few simple steps. Log into their website, fill in some necessary details, and discover how simple it is to convert currency. Also, make sure to check out their UAE tour packages to plan a trip today!

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