Common currency in S Asia: a Trojan horse

[Jade]

@idune cool. Nobody is going to introduce the common currency.

 

[my2cents]

Indian Politicians must be certified Mad if they ever go for common currency with Puny states of South Asia who treat us a Enemies. These states have nothing to offer to India.

India should realize that some of these neighbors who treat us like enemies need to be treated back like one. Just like all the fugitives in the world running away from the US find shelter in South America countries same way these countries will always be detrimental of our interests.

The only countries with whom we can have a US -Canada kind of relationship or Integrated Economy with common currency right now is Nepal and Bhutan. And may be Sri Lanka in future if they give equal rights to Tamils.

All other countries esp the one in our west and one in our east will be our South American Equivalent. So we need to stop wasting our time on them.

Way to go MST, we need you become our monetary czar.... Let them adopt our currency if they want but we should refrain from encouraging any such BS ideas.

 

[Skies]

http://www.defence.pk/forums/bangla...e-currency-indian-rupee-india-bd-trade-5.html

It's a win-win situation for India and Iran. Oil imports are the biggest burden on the economy, the main reason for our burgeoning current account deficit, and the depletion of our forex reserves. If we can pay for oil in Rupees instead of dolars or euros, that would mean that Iran would have to use those rupees to buy something from us (medicines, wheat etc have been the hot exports in the past). So in effect, we ensure that the money we pay for oil would be used to buy goods or services from us, thereby helping to ease the import-export ratio.

As for Iran, they will get a customer who is one of the biggest users of their product (oil), and with the rupees they earn, they can buy stuff from India that is hard for them to get due to the sanctions imposed on them. Indian pharmaceutical companies can help fill their dispensaries, which have been gloomily empty due to the sanctions.

Both countries are in a desperate situation, and both should bear that in mind.

On another note, I wish the GoI would end fuel subsidies. Petrol, diesel etc should be paid for fully by those who use them. Govt should not bear the burden of that. Ending subsidies for petroleum products would serve a dual purpose - to cut down govt spending and rein in the rampant inflation, and to persuade people to use only as much petroleum as they can afford (thereby reducing our oil import bill).

Source: http://www.defence.pk/forums/indian...ay-restart-iran-oil-import.html#ixzz2dJ7z9b8m

So now India will make payment in Rupee to Iran for oil?!

LoL, now we have got it why a few months ago India and BAL were vouching for common currency. Actually, it was to reduce the current account deficit of Big power India. India anticipated it before, but our Mal Uncle was clueless.

 

[livingdead]

So now India will make payment in Rupee to Iran for oil?!

LoL, now we have got it why a few months ago India and BAL were vouching for common currency. Actually, it was to reduce the current account deficit of Big power India. India anticipated it before, but our Mal Uncle was clueless.

Its okey, I think its fine to continue trade in dollar with bd, as we gain precious dollar.
Incase of iran its opposite, we have a trade deficit with them.

Am not an expert but am I missing something @Skies @BDforever ?

 

[Skies]

Its okey, I think its fine to continue trade in dollar with bd, as we gain precious dollar.
Incase of iran its opposite, we have a trade deficit with them.

Am not an expert but am I missing something @Skies @BDforever ?

Right we have trade deficit with India but what you are missing here is, India wants its Rupee to be strong. If Rupee is traded with BD, Rupee will be stronger as we have trade deficit with India, and consequently, India will be benefited from treading with Iran using stronger Rupee too.

Anyone who thinks India will be less benefited in a mutual deal with BD than BD, is a naive. Do you really think that knowing we have tread deficit with India, India will miss the chance of earning more USD? Impossible Indeed.

 

[livingdead]

Right we have trade deficit with India but what you are missing here is, India wants its Rupee to be strong. If Rupee is traded with BD, Rupee will be stronger as we have trade deficit with India, and consequently, India will be benefited from treading with Iran using stronger Rupee too.

Anyone who thinks India will be less benefited in a mutual deal with BD than BD, is a naive. Do you really think that knowing we have tread deficit with India, India will miss the chance of earning more USD? Impossible Indeed.

We are doing it till now. We ARE getting USD from you guys. That is a fact. Your govt has shown concern about the trade imbalance.
So its not an uncomfortable position we are in at the moment.

Even the dollar earning from you makes rupee stronger.

 

[Skies]

We are doing it till now. We ARE getting USD from you guys. That is a fact. Your govt has shown concern about the trade imbalance.
So its not an uncomfortable position we are in at the moment.

Even the dollar earning from you makes rupee stronger.

Yes the dollar earning from us/anyone makes rupee stronger against USD, but GOI wants make Rupee stronger than other currency too, so that it can buy oil at less cost using Rupee other than using USD. In other words, GOI want to use less USD to make its economy stronger by using more Rupee for treading.

 

[livingdead]

Yes the dollar earning from us/anyone makes rupee stronger against USD, but GOI wants make Rupee stronger than other currency too, so that it can buy oil at less cost using Rupee other than using USD. In other words, GOI want to use less USD to make its economy stronger by using more Rupee for treading.

how is making rupee stronger against taka more effective with iran than making rupee stronger against USD. Iran will trade with us in rupee but the reference they will use for international crude will be USD not taka.
I did not get your point.

 

[Skies]

how is making rupee stronger against taka more effective with iran than making rupee stronger against USD. Iran will trade with us in rupee but the reference they will use for international crude will be USD not taka.
I did not get your point.

You have been buying oil using USD, but now you have trade deficit, so now you want to spend USD less. And now you want to use Rupee more in international treading.

Since we have tread deficit with India, it means, if you tread with India using common currency Rupee, more Rupee will flow from BD to India. It means India's Rupee reserve will increase, and then it means if India's Rupee reserve increase more, India can spend more rupee with other counties like Iran for importing oil which ultimately lower the cost of oil import than using USD.

Suppose, if America has more USD reserve, it can buy more in international market if USD is used as common currency, likewise, if India has more Rupee reserve, it can buy more in international market if Rupee is used as common currency. So this is my point.

 

[livingdead]

You have been buying oil using USD, but now you have trade deficit, so now you want to spend USD less. And now you want to use Rupee more in international treading.

Since we have tread deficit with India, it means, if you tread with India using common currency Rupee, more Rupee will flow from BD to India. It means India's Rupee reserve will increase, and then it means if India's Rupee reserve increase more, India can spend more rupee with other counties like Iran for importing oil which ultimately lower the cost of oil import than using USD.

Suppose, if America has more USD reserve, it can buy more in international market if USD is used as common currency, likewise, if India has more Rupee reserve, it can buy more in international market if Rupee is used as common currency. So this is my point.

mate, its in india's interest to trade with BD in USD and trade with Iran using rupee. We want to horde USD because thats the internatioal currency. We have enough rupee already, bd cant possibly give us more rupee.

 

[indianpunjabi]

mate, its in india's interest to trade with BD in USD and trade with Iran using rupee. We want to horde USD because thats the internatioal currency. We have enough rupee already, bd cant possibly give us more rupee.

mere muh ki baat apne keh di

 

[Skies]

mate, its in india's interest to trade with BD in USD and trade with Iran using rupee. We want to horde USD because thats the internatioal currency. We have enough rupee already, bd cant possibly give us more rupee.

No India has already proposed for treading in Rupee.

The Confederation of Indian Industries (CII) former President Shekhar Datta proposed use of the India currency, Rupee, in bilateral trade to boost business between the two countries.

Source: http://www.defence.pk/forums/bangla...ndian-rupee-india-bd-trade.html#ixzz2dMXlIGsT


Plus, who knows how much Rupee reserve you will need in future once started business with Iran in rupee.