PRESENTATION ON:

FOREIGN EXCHANGE

TOURISM MANAGEMENT
(MBA 3041)
Presented by;
SINO JOSEPH
MBA/50013/12
WHAT IS FOREIGN EXCHANGE???
The exchange of one currency for another, or
the conversion of one currency into another
currency.
Foreign exchange also refers to the global
market where currencies are traded virtually
around-the-clock.
The term foreign exchange is usually
abbreviated as "forex" and occasionally as
"FX."
FOREIGN EXCHANGE
Increasing globalization has led to a massive
increase in the number of foreign exchange
transactions in recent decades.

The global foreign exchange market is by far
the largest financial market, with average
daily volumes in the trillions of dollars.
TOP 10 TOURISM COUNTRIES
COUNTRIES VISITORS (in millions)
1. FRANCE 83.0
2. UNITED STATES 67.0
3. CHINA 57.7
4. SPAIN 57.7
5. ITALY 46.4
6. TURKEY 35.7
7. GERMANY 30.4
8. UNITED KINGDOM 29.3
9. RUSSIA 25.7
10. MALAYSIA 25.0
(As per 2012)
COUNTRIES AND THEIR
CURRENCIES
COUNTRIES AND CURRENCIES
On a total, there are 168 universally accepted
official currencies.
Lets discuss the currencies of the top ten
tourism countries
FRANCE
(EURO)
UNITED STATES
(DOLLAR)
CHINA
(YUAN RENMINBI)
SPAIN
(EURO)
ITALY
(EURO)
TURKEY
(LIRA)
GERMANY
(EURO)
UK
(POUNDS)
RUSSIA
(RUBLE)
MALAYSIA
(RINGGIT)
HOW TO OBTAIN FOREIGN
EXCHANGE (INDIAN CONTEXT)
CURRENCY CAN BE EXCHANGED FOR
FOREIGN ONES AT ANY BANKS OR LOCAL
DEALERS OR MONEY CHANGERS
SPECIFICALLY AUTHORISED BY RBI UNDER
SEC 10(1) OF FEMA, 1999.
FIRSTLY, CHOOSE THE DEALER WHO
OFFERS THE BEST RATE. THE RATE
INCLUDES THE BASE PRICE + THE SERVICE
CHARGE (MAY VARY).
PROCEDURE TO OBTAIN FOREIGN
EXCHANGE
SECONDLY, SIMPLY GO TO THE
PARTICULAR DEALER AND OFFER THE
CURRENCY TO RECEIVE THE EQUIVALENT
FOREIGN CURRENCY.
CUSTOMS FORMALITIES FOR
FOREIGN EXCHANGE
FOREIGN CURRENCY: FOREIGN CURRENCY
NOTES, TRAVELERS CHEQUES, DRAFTS DRAWN
ON BANKS IN INDIA OR BANK LETTERS OF CREDIT
CAN BE BROUGHT INTO INDIA WITHOUT LIMIT.
HOWEVER, IF THE TOTAL AMOUNT OF FOREIGN
CURRENCY NOTES OR TRAVELERS CHEQUES
BROUGHT INTO INDIA AT ONE TIME EXCEEDS
US$10,000/- OR ITS EQUIVALENT, IT IS REQUIRED
TO BE DECLARED BY THE HOLDER TO THE INDIAN
CUSTOMS AUTHORITIES ON ARRIVAL ON A
CURRENCY DECLARATION FORM (CDF). A COPY
OF THE CDF DULY CERTIFIED BY THE CUSTOMS
WILL BE HANDED OVER TO THE DECLARANT.
CUSTOMS FORMALITIES FOR
FOREIGN EXCHANGE
INDIAN CURRENCY: BRINGING INDIAN
CURRENCY OF ANY DENOMINATION
INTO INDIA IS PROHIBITED. FOREIGN
TOURISTS' RETURNING TO INDIA FROM
NEPAL ARE, HOWEVER, PERMITTED TO
BRING WITH THEM UNSPENT INDIAN
CURRENCY WHICH NEEDS TO BE
DECLARED.
CUSTOMS FORMALITIES FOR
FOREIGN EXCHANGE
PERSONAL JEWELLERY: FOREIGN TOURISTS ARE
PERMITTED TO BRING WITH THEM THEIR
PERSONAL JEWELLERY EITHER WORN ON THEIR
PERSON OR AS PART OF THEIR PERSONAL
EFFECTS IN ACCORDANCE WITH CUSTOMS
BAGGAGE RULES. THE RULES, INTER ALIA,
REQUIRE AN ENDORSEMENT BY THE INDIAN
CUSTOMS ON THE TOURISTS' PASSPORTS ABOUT
THE JEWELLERY BROUGHT BY THE LATTER. IN
ORDER TO FACILITATE CUSTOMS CLEARANCE OF
THE SAME PERSONAL JEWELLERY AT THE TIME
OF THE TOURIST'S DEPARTURE FROM INDIA,
DETAILS THEREOF ARE ENDORSED ON THE
TOURIST'S PASSPORTS AT THE TIME OF ENTRY.