India wants to make the rupee more acceptable but does
not have the industrial capacity to do it, only just making loud noises
that failed to convince other countries to accept rupees in trade.
Countries
will accept payments in rupees if India can provide goods that can be
exchanged with those countries holding rupees for trade. Using coercion
is not the way to go.
India tried to force Russia's hand with
some Indian oil refiners refusing Russian oil, but that means paying
more which is committing suicide. Russia is not ruffled and knows that
India is only playing musical chairs just for show.
Russia can
always sell highly discounted oil to China, helping China's
manufacturing to lower costs even more and producing even more
competitive products for the world. The USA and the EU can talk about
subsidies from the Chinese Government when they themselves are
subsidizing its own chip manufacturers with billions. The pot cannot
call the kettle black. It is a shameful excuse.
Anonymous
Modi got his wings clipped and becomes a minority PM.
ReplyDeleteSunak got sunak and no longer PM of UK.
Kamala would soon be alamak.
Modi is in Moscow undoubtedly to beg Putin to accept rupees for oil and weapons. The spin however is that he is trying to broker a peace deal in Ukraine to shore up his fallen political standing at home and show his loyalty to Purin. This is his first visit to Moscow in five years.
ReplyDeleteErdogan was there first on a similar mission and had been castigated by NATO. That angered him and he asked whether he must get permission from NATO to do that? This indicates that NATO does not want peace in Ukraine.
Like the Chinese brokered peace deal between Iran and Saudi Arabia, Erdogan knows that no peace deal can ever be successful with the USA and NATO involved. The only way to succeed is by keeping the USA and NATO pests out of the room.
The war for Ukraine is already lost with Ukraine totally out of manpower for further troop enlistment and is now reported to have resorted to using prisoners for boosting its army strength.
Investors in India will suffer significant currency losses when they exit the Indian markets
ReplyDeleteIn 2007, one US dollar was worth 39.00 Indian rupees. Today in 2024 one US dollar is worth 83.50 Indian rupees.
The Indian rupee is locked in a long-term depreciating trend, and those who hold rupees will suffer huge losses in the long term.
Who wants rupees? Only those investors (u know who) who love India and visit their temples, and change their strong local currency like the Sing dollar into rupees.
Why is the Indian rupee always falling in value in the long term?
That's because India always have an overall trade deficit with the world.
Hence in the Indian foreign exchange market the total amount of rupees to be sold by Indian importers in exchange for foreign currencies to buy foreign goods is always more than the total amount of rupees to be bought by Indian exporters getting rid of their foreign currencies receipts.
G7 ordered Modi to block the expansion of BRICS.
ReplyDeleteLike the USA complaining about deficits by not producing anything worthwhile to compete and sell to China, it is expecting China to give them manufactured products for freeloading by printing toilet papers in exchange that are about to be reduced to banana notes. India is taking a leaf from the USA.
ReplyDeleteBoth countries boasted about wanting to compete with their 'Made in USA' or 'Made in India' products by just paying lip service and hoping for a miracle. The USA realized that it cannot compete and is resorting to stifle China, fabricating all kinds of excuses - subsidies, overcapacity and unfair trade practices. These are tactics that the USA had been using itself in the current chip manufacturing sector and it has no shame accusing others of doing it.