Psychology of Foreign Exchanges
When one travels from country to country and only stays for a short period in each, there is no culture shock fortunately, as culture shock generally kicks in after 6 months or so. But there are for sure other shocks. Getting used to the currency one of them.
On my first arrival to Morocco, very late at night, I first got some cash in the airport. Coming out of the terminal, I took a taxi to the place I reserved about 3km away. The fare of $3 was agreed upon from start. At the destination, I gave him 400 dirhrams, he looked at the money and thanked me. Only after he left, I realized that I had given him too much money. $3 was about 30 dirhams, not 400. But 400 had been about $3 in the previous country I just departed from. Luckily, I had his phone number and had someone nearby call him. He kindly returned and gave me back the 400, and in return, I gave him some gratuity plus 30 dirhams.
After traveling to many countries one after another, though things like this didn’t happen much, I found getting used to a new currency on a psychological or subconscious level is not easy.
Let’s say, you believe $20 is a fair value for some item in your country, and below $20 would be regarded as cheap and above $20 expensive.
Now let’s say you arrive in a country where the item is priced at 5 dinars. Without calculating, might you have some impression that the item is very cheap, though in actuality 5 dinars is equivalent to $20? I have.
Then you arrive in another country where the item is priced at 60 dinarrs. Without calculating, might you have thought that the item is very expensive, though in actuality 60 dinarrs is equivalent to $20? I have.
And very interestingly, the psychology doesn’t always seem to go along with the amount of the currency unit. Sometimes, it’s reversed, especially when the currency is very lowly valued. Say you arrive in yet another country where the item is priced at 7000 dinarrrs. You had the impression that dinarrr is very low valued. In this case you might consider the item is very cheap as you might consider 7000 dinarrrs is really not much money, and in actuality 7000 dinarrss is equivalent to $20. This occurred to me often.
I wonder if this subconscious reaction can be generalized to most people. If so, perhaps countries should consider adjusting the value of their currency to boost the economy.
For instance, if the majority of their foreign buyers come with a US dollar mentality, then (without considering other effects), increase the value of its currency above that of the dollar, or largely decrease it to at least 100’s times below that of the dollar. This would likely increase foreign buying.
Cheers! Santé! Prost!
psychology
behavior
travel
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