India-Japan expand currency swap pact to 50 billion

[anant_s]

Very good move. Considering the quantum of trade between the countries, this should help India significantly. with news coming recently that we may start crude import from Iran in INR and perhaps trade with China too in Rupee, looks like FinMin is finally getting its act together.
Only regret is that some of these steps should've been taken long ago not when we have pushed to a corner and there are little alternates left.

 

[SURYA-1]

Oh baksh do sir jee, abhi toh tax se chutkara mila hai.

But it was kind of you to remember me.

I know you as only CA onboard here so, I thought none else can explain it better than you.Sorry for the trouble I caused you .

 

[Sergi]

What does Japan gain from this?

This currency exchange will give a early hand to Rupee to get back to the earlier level. That will help Indian economy i.e. more opportunity for Japanese business and when ₹ come back to old level they will have direct profit as now they will be getting exchange at 66/67 Rs.

 

[Indo-guy]

This currency exchange will give a early hand to Rupee to get back to the earlier level. That will help Indian economy i.e. more opportunity for Japanese business and when ₹ come back to old level they will have direct profit as now they will be getting exchange at 66/67 Rs.

Watch the Video....that I posted where Montek Singh Ahluvalia clearly says that we have more than sufficient safety margin of foreign exchange ...the current deal if at all will be invoked only as last resort in worst case scenario ....
but it will definitely have impact over market sentiments...

 

[Fireurimagination]

Add to ths the other development $ 100 billion fund BRIC markets pool reserves to create buffer - Sep. 6, 2013

 

[Indo-guy]

Add to ths the other development $ 100 billion fund BRIC markets pool reserves to create buffer - Sep. 6, 2013

of that 100 billion $ actually 41billion dollars comes from China ! ....

Speaks volumes about China's increasing economic clout ....


I hope we don't find our self in situation where we will have to go to BRICS bank ....

 

[darkhero]

Good. That's a good thing for China too. We support it. We also want currency swap among all BRIC countries.

To those Indians who think this is a big blow to China, think again. Some information for you:

China starts direct currency trading with Japan - Xinhua | English.news.cn
UK and China establish currency swap line - FT.com

 

[neehar]

What does Japan gain from this?

1.they can trade with india in rupees like buying agri products,raw materials etc.
2.they are investing in india any way and they can do it now with rupees.

Good. That's a good thing for China too. We support it. We also want currency swap among all BRIC countries.

To those Indians who think this is a big blow to China, think again. Some information for you:

China starts direct currency trading with Japan - Xinhua | English.news.cn
UK and China establish currency swap line - FT.com

no friend or foe in trade.it values both the countries especially when currency becomes volatile i.e its value is changing rapidly.to get some respite countries make such agreements with others with whom they have considerable trade.

 

[Rajib]

Japan has significant exposure in India infra project like Mega Delhi-Mumbai industrial corridor.East west metro corridor in kolkata.so currency swap will work as natural hedge for both country without any exposure to dollar.Also parent company in Japan can invest in Indian subsdiary in rupee directly like Suzuki Honda Toyota .As India has become a auto hub for export to Africa latin america europe.But thanks to Japan.

 

[Echo_419]

Good. That's a good thing for China too. We support it. We also want currency swap among all BRIC countries.

To those Indians who think this is a big blow to China, think again. Some information for you:

China starts direct currency trading with Japan - Xinhua | English.news.cn
UK and China establish currency swap line - FT.com

No Indian thinks this is a big blow for the Chinese
No one even mentioned them

As for china they should invest more in India to reduce the Trade Deficit

 

[Abingdonboy]

Japan is taking an incredibly positive role in India's devlopment as a whole. If not for Japanese funding many mega infra projects in India.


This is only good for both nations and the region as a whole.



Good on both sides for seizing the intiative and forging ahead.

 

[474474]

Enemies worst enemy is your best friend !

I doubt a calm rational asian guy would think that way, seriously what economic benefits for Japan?

This currency exchange will give a early hand to Rupee to get back to the earlier level. That will help Indian economy i.e. more opportunity for Japanese business and when ₹ come back to old level they will have direct profit as now they will be getting exchange at 66/67 Rs.

I think stability is more important than going to any 'old level', imho a change (any change) in currency is worse than being fixed at high or low. The industries that have adjusted their production process will be devastated if you make such a huge jump.

 

[he-man]

Japan is taking an incredibly positive role in India's devlopment as a whole. If not for Japanese funding many mega infra projects in India.


This is only good for both nations and the region as a whole.



Good on both sides for seizing the intiative and forging ahead.

sooner or later rising tensions b/w china and japan are gonna force japan to base its industries somewhere else.

what better than india,,,thats why its giving finance for many industrial corridors

 

[sree45]

I doubt a calm rational asian guy would think that way, seriously what economic benefits for Japan?

At the same time, there isn't much loss to Japan either. A strong India is in the best interests of Japan.

 

[Indo-guy]

What does Japan gain from this?

You see this being mutual currency swap ....japan will be able to trade with India using its own currency ...again able to save precious foreign exchange !
Besides Japan has been investing in several of India projects ....bilateral trade is likely to grow logarithmically in coming years ....
Japan's own economy( which is largely manufacturing based one ) is slowing down due to decreased exports ...
India is a large market ...with billion people ...No market based economy can ignore such large market in its own vicinity ...

India being Asian power siting over crucial ....Indian ocean region sea routes and traditional enemy to its own sworn enemy ...It is natural that in India , Japan sees an important ally ...


Given all these reasons it's natural ...that Japan has nothing to lose but lot to gain !

Prospective alliance with India is important hedge against aggression in South China sea ....

Recently China has been flexing its muscles in South China sea ....


But last thing China will want to to precipitate Anti China alliance in asia ...


Close ties with India might force China to tone down its military posture in South China sea !


With US gradually extricating itself from Asian quagmire ....It is natural that countries threatened by China will seek ...new allies to fend against menace of China.