India's Forex Reserves Fall As Foreign Investors Head For The Exits

[Hellfire2006]

If India replaces its millions of human Rickshaws with motorcycles it will also have a balance of payments issue. The rich get rich in India and the average people get $hit. And stupids like you suck up on the lies and come to a Pakistani forum to convince us about your lies.

What the heck are you blaberring on about ? First you say that india is going to default on it's debt and that indians will jump into their presiden't pool , then suddenly you change your tone and start talking about rickshaws in india , are you even in your right state of mind ? I've given you resource to population ratio of india and I've proven you wrong on how IMF collects it's data and now you're changing the course of this argument to mask your failure in presenting a logical , factual argument. And above all of that you're calling me stupid when you yourself have the IQ of a 5 yr Old.

 

[MH.Yang]

RBI issued notification for Rupee Trade settlement on 11 July, 2022.

So yes, its Old news.

The Rupee-Rouble trade arrangement is an alternative payment mechanism to settle dues in rupees instead of Dollars or Euros. The idea was first conceived in 1953 under the Indo-Soviet trade agreement.

Pretty much ALL trade between India Russia happens this way.

okya, let me correct my words.

July 11, 2022, two days ago. Before this date, India used CNY for trade with Russia.

As for the later trade using rupees, there is no example for the time being.

 

[Hellfire2006]

This is useless.

No one would be willing to trade in rupees, except Bhutan. India and Russia use CNY for transactions.

you should not be too quick to make a judgement. Wait for atleast 2 years to see the effects. People used to say the same thing about UPI

 

[MH.Yang]

you should not be too quick to make a judgement. Wait for atleast 2 years to see the effects. People used to say the same thing about UPI

The Indian rupee has depreciated for a long time. No one would like to accept it except Bhutan.


In 1994, one dollar was converted to 8.6CNY.
In 2022, 1 US dollar was converted to 6.4CNY.

In 1994, one dollar was converted to 11.2 rupees.
In 2022, one dollar was exchanged for 79.6 rupees.

 

[Hellfire2006]

N

India and Russia DOES NOT USE CNY for transactions.

You have been lied to by u'r govt.

India Russia uses Rupee-Ruble trade and has been doing it for the past couple of decades.

I will pass on u'r earnest recommendations to our govt. But don't hold u'r breath.

No buddy , the system isn't functional yet.

The Indian rupee has depreciated for a long time. No one would like to accept it except Bhutan.


In 1994, one dollar was converted to 8.6CNY.
In 2022, 1 US dollar was converted to 6.4CNY.

In 1994, one dollar was converted to 11.2 rupees.
In 2022, one dollar was exchanged for 79.6 rupees.

You could be right but I still prefer observing the results over a course of time rather than rushing to direct conclusion.

 

[Faxapis]

okya, let me correct my words.

July 11, 2022, two days ago. Before this date, India used CNY for trade with Russia.

As for the later trade using rupees, there is no example for the time being.

Wrong again.

India buys Russian Oil in Rubles.

It was one private company who brought russian coal one time in cyn and you seem to think that is the norm. Its not.

in the 70s and the 80s, India has established a rupee-rouble bilateral currency arrangement that agrees to a mutual value. So ealier trade use to take place via this agreement.

N

No buddy , the system isn't functional yet.

You could be right but I still prefer observing the results over a course of time rather than rushing to direct conclusion.

Of course its not functional since the USSR collapsed.

Which is why RBI has now come out with the new notification that will enable banks to open a Vostro account and use this to trade with anyone with Indian Rupees.

The Indian rupee has depreciated for a long time. No one would like to accept it except Bhutan.


In 1994, one dollar was converted to 8.6CNY.
In 2022, 1 US dollar was converted to 6.4CNY.

In 1994, one dollar was converted to 11.2 rupees.
In 2022, one dollar was exchanged for 79.6 rupees.

Pointless since CNY is pegged to the dollar. Its not freely convertible.

 

[MH.Yang]

Wrong again.

India buys Russian Oil in Rubles.

It was one private company who brought russian coal one time in cyn and you seem to think that is the norm. Its not.

in the 70s and the 80s, India has established a rupee-rouble bilateral currency arrangement that agrees to a mutual value. So ealier trade use to take place via this agreement.



Of course its not functional since the USSR collapsed.

Which is why RBI has now come out with the new notification that will enable banks to open a Vostro account and use this to trade with anyone with Indian Rupees.



Pointless since CNY is pegged to the dollar. Its not freely convertible.

Okya, You send me a transaction example of India using rupee to purchase Russian oil.

Pointless since CNY is pegged to the dollar. Its not freely convertible.

If I understand correctly, are you implying that CNY is overestimated? Thank you. The next time Americans accuse China of underestimating CNY, we will hire you as our negotiator.

 

[Faxapis]

Okya, You send me a transaction example of India using rupee to purchase Russian oil.

If I understand correctly, are you implying that CNY is overestimated? Thank you. The next time Americans accuse China of underestimating CNY, we will hire you as our negotiator.

CNY is a fake currency used only for international trade. IT cannot be used inside china. It has to be RECONVERTED into RMB for trade in china.

Which is why CNY can be of any value determined by the Chinese govt.

Also I said India buys oil in Rubles, not rupees. Post 11 july, Rupee trade will take place.

 

[MH.Yang]

CNY is a fake currency used only for international trade. IT cannot be used inside china. It has to be RECONVERTED into RMB for trade in china.

Which is why CNY can be of any value determined by the Chinese govt.

Also I said India buys oil in Rubles, not rupees. Post 11 july, Rupee trade will take place.

Correct a mistake you made. You can freely buy and sell CNY in any bank. Of course, there will be an upper limit. Because the Chinese govt does not want too much offshore RMB.

The USA accused China of manipulating and underestimating CNY, which means that whenever CNY appreciates too fast, the Chinese govt will use its huge foreign exchange reserves to intervene.

Because of China's huge foreign exchange reserves and the determination of the Chinese govt to maintain the exchange rate, no financial institution can rely on hyping CNY to make money. This is the reason why the US govt and Wall Street are angry..

 

[Faxapis]

Correct a mistake you made. You can freely buy and sell CNY in any bank. Of course, there will be an upper limit. Because the Chinese govt does not want too much offshore RMB.

The USA accused China of manipulating and underestimating CNY, which means that whenever CNY appreciates too fast, the Chinese govt will use its huge foreign exchange reserves to intervene.

Because of China's huge foreign exchange reserves and the determination of the Chinese govt to maintain the exchange rate, no financial institution can rely on hyping CNY to make money. This is the reason why the US govt and Wall Street are angry..

Which is why any comparison with INR is spurious.

Though I agree it a smart strategy to deal with predator western system.

 

[MH.Yang]

Which is why any comparison with INR is spurious.

Though I agree it a smart strategy to deal with predator western system.

CNY and INR are different.

CNY is facing appreciation pressure, while INR is facing depreciation pressure.

Americans have always wanted to drive up the exchange rate of CNY to hit China's exports. The Chinese government intervenes in the market with foreign exchange to protect itself, which is also in line with the rules of the game.

If Wall Street is unhappy, you can directly destroy China's foreign exchange reserves.

 

[Faxapis]

CNY and INR are different.

CNY is facing appreciation pressure, while INR is facing depreciation pressure.

Americans have always wanted to drive up the exchange rate of CNY to hit China's exports. The Chinese government intervenes in the market with foreign exchange to protect itself, which is also in line with the rules of the game.

If Wall Street is unhappy, you can directly destroy China's foreign exchange reserves.

Rubbish since you are comparing apples and oranges.

CNY is manipulated currency so its not know what kind of pressure it has.

 

[MH.Yang]

India has recently agreed to settle trade in Indian Rupees.

The rupee's use in trade settlement would help the RBI in conserving foreign exchange.

Explained: Why RBI has allowed rupee settlement system for i ..

I read this article carefully. It's a big news. You Indians are de dollarization!

Goods imported from India need to be settled in rupees. lol, are you learning Russian?

But Russia has oil that everyone must buy. What does India have?

And Americans let you into QUAD, but you betrayed the dollar when Americans fell into inflation.

 

[Faxapis]

I read this article carefully. It's a big news. You Indians are de dollarization!

Goods imported from India need to be settled in rupees. lol, are you learning Russian?

But Russia has oil that everyone must buy. What does India have?

And Americans let you into QUAD, but you betrayed the dollar when Americans fell into inflation.

Do you have a point ?

 

[MH.Yang]

Do you have a point ?

Of course I have no point. But do you know the consequences of that?