Sunday, January 01, 2017

Why are Indians paying in dollars at Delhi airport?

Across the world, whether you are in New York or in Manila, when you buy something from the duty free shops inside an airport, you see the prices listed in local currency and transact in that currency by default. It doesn't matter whether you are a local, a resident of that country, or if you are a foreigner just passing through the airport. You can shop at the airport using local currency. Although, if you don't have the local currency, you can also pay in dollars or any other currency that the shop may accept (at the Hong Kong airport, for example, they accept Chinese RMB).

But this rule - or rather norm - doesn't apply on Delhi Airport. It is a unique airport, possibly the only one across the world where the duty free shop doesn't show prices in local currency. Instead, the folks running the Delhi Airport love dollars - yep, those crisp $$$ notes - so much that they don't give two hoots to the rupee. They just don't want it, even though rupee is the legal tender in this country, backed by the government of the nation.
Here is what happens at duty free shops at the IGI airport. You see the prices in dollars. Now if you are an Indian, you have two ways to pay for something that has its price shown in dollars. You can ask the staff at DFS to convert the price to rupee, which they do by multiplying the price with the forex rate of the day. Then you can pay this in cash in rupees. Or you can pay directly in dollars. The pay-in-rupees option is only available to Indians and that too if you are paying cash. If you pay by card, your card is charged in dollars.
31/12/16 Daily O
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