I think this is an important move in order for Android to continue it's international expansion for not just handsests but also relevant apps. It'll be interesting to see whether it has an impact on whether users are more likely to buy apps say in the Middle East because they can easily understand the price in their local currency.

"In a blog post, app analytic company Distimo noted that, until now, the currency of paid applications was based on the currency of the developer’s home country. Developers from the United Kingdom offered their apps in GBP, the United States in US$, and so forth. This currency would then be displayed to all Android Market consumers, regardless of their home country. This meant that a user in the UK, for example, would view apps in EUR, GBP, US$, and JPY in the store. This has now changed."