Real story of American Dollar v/s Indian Rupee

[makelove_notwar]

And what oil exporting country would be happy to take Rupees instead of US dollars right now?

Even the Indians themselves don't trust the Rupee, they would rather have Gold.

Considering that the Rupee is currently in a state of collapse, this is the worst time for a currency swap agreement. I mean who on Earth would want Rupees instead of US dollars at this point?

I hope you know that currency is not the only means to carry a trade through. Oh forget it, who am I fooling LOL.

 

[Chinese-Dragon]

India need more governance , less government.

The funny thing is that Manmohan Singh is a highly intelligent economist, so he obviously knows what is the "right" thing to do for the long term health of the Indian economy.

But there is a big difference between knowing the right thing to do, and having the political will to do it.

Get the Indian government to stop chaining Manmohan Singh's hands with political games, and give him a full mandate to fix India's economy with structural reforms, without worrying about vote banks or the coming election. Then he can fix it.

 

[Screambowl]

Rupee has hit low but it is profitable to NRI's and those working abroad. The revenue generated from the capital coming from abroad is quite high.

India has the second highest gold reserves. selling 1% gold out of this reserve when the gold price in USA is high, will balance everything. Not a big deal.

In long term, it will benefit India since service will be cheap in India, more inflow of foreign currency will increase the rupee value.

It is indeed a planned game by government and the businessmen to give profit to international market. 3-4 months before the election they will bring back to normal. Tht's for sure.

 

[makelove_notwar]

The funny thing is that Manmohan Singh is a highly intelligent economist, so he obviously knows what is the "right" thing to do for the long term health of the Indian economy.

But there is a big difference between knowing the right thing to do, and having the political will to do it.

Get the Indian government to stop chaining Manmohan Singh's hands with political games, and give him a full mandate to fix India's economy with structural reforms, without worrying about vote banks or the coming election. Then he can fix it.

Now you're talking. A very valid point indeed. But the problem is that he is not getting it. We will soon see the end of him if he continues like that. Political end, that is.

 

[rustam90789]

Oh my god you are so blinded by the hate for India that you just keep on talking without thought. What about the 20 years before 2008? How is India in the BRIC? (BTW, B doesn't stand for Bangladesh, no offence).

Stop being cynical and hope that all the countries in the sub continent prosper. Pakistan and Bangladesh will get affected if the Indian economy falls, and vice-versa.

Pakistan´s economy will not be affected with a crash of indian economy simply because pakistani economy is not integrated with indian economy. India is not a big importer of pakistani exports , neither is pakistan a big importer of indian exports. Moreover pakistani economy is already at the bottom since last 5 years or so, it can now only take off somewhat due to better financial management of newly elected PMLN government in pakistan.

 

[makelove_notwar]

Pakistan´s economy will not be affected with a crash of indian economy simply because pakistani economy is not integrated with indian economy. India is not a big importer of pakistani exports , neither is pakistan a big importer of indian exports. Moreover pakistani economy is already at the bottom since last 5 years or so, it can now only take off somewhat due to better financial management of newly elected PMLN government in pakistan.

Economic factors are not the only things which effect a nations economy. I agree they are the main contributors, but it depends on a lot other factors as well viz. political, social etc. It would be wrong to say that Pakistan won't get effected at all.

 

[senkakudefender]

The funny thing is that Manmohan Singh is a highly intelligent economist, so he obviously knows what is the "right" thing to do for the long term health of the Indian economy.

But there is a big difference between knowing the right thing to do, and having the political will to do it.

Get the Indian government to stop chaining Manmohan Singh's hands with political games, and give him a full mandate to fix India's economy with structural reforms, without worrying about vote banks or the coming election. Then he can fix it.

I'll give you an example, an untrained, "unqualified" man who grew up in dire poverty created this in just 6 -8 yrs:

The Narendra Modi economic model offers a compelling alternative to the mess at the Centre - Economic Times

The PM is just a figurehead, he takes no initiative and is 82 yrs old. People hate this govt. You can clearly see why.

Your Premier is also wise, he understands 10% won't last forever, he's trying to encourage China to grow into Europe like high grade economy overall growing at 6 -7% PA, something which is laudable and very much achieveable, although road will be bumpy.

 

[Screambowl]

falling rupee does not mean that economy has crashed.Economy is going fine, but one has to pay more for import. That's it. Economy crashes when you have to pay 5-6 times more of the basic price for a commodity in own country or Bank loses money due to big defaulters. When inflation suddenly increases, by 10-20%.

 

[senkakudefender]

Pakistan´s economy will not be affected with a crash of indian economy simply because pakistani economy is not integrated with indian economy. India is not a big importer of pakistani exports , neither is pakistan a big importer of indian exports. Moreover pakistani economy is already at the bottom since last 5 years or so, it can now only take off somewhat due to better financial management of newly elected PMLN government in pakistan.

Man , relax apna ghar ka mamla hai. Padosi ko chai pilane ke liye bulate hai , mujra nachane ke liye nahi.

 

[Developereo]

And what oil exporting country would be happy to take Rupees instead of US dollars right now?

Iran agrees to take all oil payments from India in rupees - Times Of India

 

[rustam90789]

Man , relax apna ghar ka mamla hai. Padosi ko chai pilane ke liye bulate hai , mujra nachane ke liye nahi.

Write in english , I have problems with the bhayya language.

 

[Chinese-Dragon]

Iran agrees to take all oil payments from India in rupees - Times Of India

Firstly that was a month ago before the Rupee started the most recent free-fall, secondly did you even read the first line in that article?

NEW DELHI: Iran has agreed to take payments for oil it sells to India entirely in rupees after US and western sanctions blocked all other payment routes.

Blocked all other payment routes. I asked who would be "happy" to get Rupees instead of US dollars "right now".

Semantics as usual Developereo.

At least your fellow Gujarati (Modi) has a good chance of becoming the Indian PM now, since the economy is usually the most important factor in elections.

 

[anant_s]

Biggest problem right now is Inflation and not the currency. RBI is not letting its grip on interest rates loosen anytime soon. In this scenario, we can't expect manufacturing to look up in near future. However with weakening rupee, Service sector like IT is sure to benefit. Traditionally since liberalization, it is the agriculture that has lagged and if someone can make the agriculture sector grow at 3-5%, our economy will start looking up with food inflation also coming down.
I ain't an economist but in these tough times, govt should bother more about the sectors that actually contribute to economy in a major way. Ideally a govt underthe circumstances would have made foreign investment norms easier, but given elections looming large, it is highly unlikely anything big ticket is going to be announced.

 

[anant_s]

The funny thing is that Manmohan Singh is a highly intelligent economist, so he obviously knows what is the "right" thing to do for the long term health of the Indian economy.

But there is a big difference between knowing the right thing to do, and having the political will to do it.

Thats the problem, the person who actually calls the short is least bothered about economy and more about Food Security Bill (God alone knows, how govt is going to pay for it).
Realistically unless the next govt. is strong without regional parties support, situation ain't going to change much.

 

[Developereo]

Semantics as usual Developereo.

More like weaseling.

Iran is willing to take rupees, which is all that matters. Arguing over what is 'happiness' is for philosophers.

Also, you fail to understand how barter agreements work. The ongoing value of the INR is irrelevant. The market price for a barrel of oil is listed in USD, regardless of what the customer actually pays.

I can agree to sell you 5 USD's worth of oil, and you pay me in INR (or rice or iron ore) at the prevailing rate when the transaction occurs.