India and Iraq consider local currencies as medium of exchange after rupee decline

[k98nights]

India and Iraq consider local currencies as medium of exchange after rupee decline

PTI : New Delhi, Fri Aug 23 2013, 15:55 hrs

 

Iraq PM Nouri al-Maliki is currently in India for discussions to enhnace trade between the two countries (IE photo)

 

 

Faced with declining value of rupee and a volatile exchange rate, India is exploring the possibility of bilateral trade with Iraq in domestic currencies, Commerce and Industry Minister Anand Sharma said on Friday.

The issue of payment for trade in local currencies will be discussed during the bilateral meetings between visiting Iraqi Prime Minister Nouri Kamil Al-Maliki and Indian Ministers.

"We are exploring possibilities (of payment in local currencies, dinar and rupee) as we have substantial import. We will definitely be discussing this issue," Sharma told reporters at New Delhi.

India-Iraq bilateral trade currently stands at around USD 21 billion.

Speaking at function organised by industry chambers, visiting Prime Minister Al-Maliki invited Indian industry to take advantage of the business opportunities in different sectors like agriculture, health and education in Iraq.

"I invite Indian companies to invest in Iraq. There are great opportunities and wide avenues in different sectors," he added.

Payment for trade in local currencies will to some extent help India in dealing with the exchange rate volatility and declining value of rupee, which on Thursday slipped to a lifetime low of 65.56 against the US dollar intra-day.

 

http://www.indianexpress.com/news/-/1159149/

 

[unirod]

Is this the story to watch as the Dinar becomes internationally traded? $21 Billion USD is a staggaring amount of trade with India!

[zigmeister]

I wonder.

[Butifldrm]

Is this the story to watch as the Dinar becomes internationally traded? $21 Billion USD is a staggaring amount of trade with India!

 

 

Makes me wonder if there might be more to this story.  Remember India happens to be one of the BRIC's Nations.  Let's hope that oil trades will not be made in any other currency than the USD.    

Gold for Oil: India and Iran Ditch Dollar – Report

http://www.forexcrunch.com/gold-for-oil-india-and-iran-ditch-dollar-report/

 

 

Maliki confirms open the door to Indian companies to work in Iraq

 

 

 

 

23/08/2013 - 20:01

Author:    Amjad Salah, Ghassan Hamid  

 

 

         

 

 

Maliki during his attendance at the Conference businessmen and traders in India

 

 

 

 

 

 

Alsumaria News / Baghdad

Prime Minister Nuri al-Maliki, said Friday that Iraq opens the door wide for Indian companies in which to work, confirming the presence of willingness from the Indian side to cooperate with the Iraqi state in various fields.

 

Maliki said in a speech today at a conference businessmen and Iraqi traders and Indians, published on his official website and seen by "Alsumaria News", "we open the door to Indian companies and are heading to compensate for the lack of economic development and the establishment of reconstruction projects and services in all areas," calling on businessmen and Indian companies to "work in Iraq and take advantage of the investment and construction opportunities in the legal environment that was provided to investors."

 

Maliki confirmed that he found during his visit conducted by road to India, "prepared fully to cooperate with us in all areas and to increase cooperation and mutual understanding," pointing out that "it will be through agreements and memorandums of understanding, joint Snoukaha in the areas of agriculture, energy, oil, water resources and chemical industries, health and the diplomatic . "

 

Before that, al-Maliki had met, today, President Pranab Mukherjee at the presidential palace in the capital New Delhi, met with Indian Foreign Minister Salman Khurshid, and yielded Allqaouan for agreements on the development of diplomatic and economic relations between the two countries.

 

Indian President expressed his country's desire to get what you need from Iraqi oil, calling for increasing the volume of trade exchange, which is 21 billion dollars.

 

It is noteworthy that Prime Minister Nuri al-Maliki directed, on Wednesday (21 August 2013), to India with a ministerial delegation, after receiving an official invitation from his Indian counterpart to visit his country, was delivered during a meeting in Baghdad and Indian Foreign Minister Salman Khurshid, in (June 20, 2013 ).

 

 

http://www.alsumaria.tv/news/81422/%D8%A7%D9%84%D9%85%D8%A7%D9%84%D9%83%D9%8A-%D9%8A%D8%A4%D9%83%D8%AF-%D9%81%D8%AA%D8%AD-%D8%A7%D9%84%D8%A8%D8%A7%D8%A8-%D9%88%D8%A7%D8%B3%D8%B9%D8%A7-%D8%A3%D9%85%D8%A7%D9%85-%D8%A7%D9%84%D8%B4%D8%B1%D9%83%D8%A7/ar

 

 

 

 

Edited August 23, 2013 by Butifldrm

[Butifldrm]

Indian Minister: We will discuss with Maliki payment in trade between the two countries in local currencies instead of the dollar

Friday, August 23 / August 2013 20:28

[baghdad - where]

 

In the NBA special from New Delhi told all of Iraq [where] that the Minister of Indian Commerce and Industry Anand Sharma said on Friday that his country was considering the possibility that the bilateral trade with Iraq in the two currencies المحليتين rupee and the dinar instead of the dollar in order to face devaluation of the Indian rupee and exchange rates volatile.

 

The Indian minister said that the issue of payment in local currencies in trade between the two countries will be discussed during the bilateral meetings between Iraqi Prime Minister Nuri al-Maliki and Minister Indians.

 

"We are exploring the possibilities (pay in the local currency, the dinar and the rupiah), we have to import large and we will certainly discuss this issue.

It is known that the bilateral trade between India and Iraq have now reached about 21 billion U.S. dollars.

Meanwhile, al-Maliki has called in a meeting organized by the Chambers of Industry Indian industry to take advantage of business opportunities in different sectors in Iraq, such as agriculture, health and education in Iraq.

 

He said, "I invite Indian companies to invest in Iraq. There are great opportunities and broad prospects in different sectors."

Experts believe that the Indians will pay in the local currency will help to some extent India in dealing with exchange rate fluctuations and the devaluation of the rupee which fell to its lowest level on record 65.56 against the U.S. dollar during the day / End

Older:

http://www.alliraqnews.com/index.php?option=com_content&view=article&id=95570:2013-08-23-17-29-31&catid=46:2011-05-04-11-14-07&Itemid=77

[SgtFuryUSCZ]

***///

 

Verrrry interesting.... tick, tick, tick...  

[TrinityeXchange]

I love it, I love it, I love it!!  Here is my take on this.  Please correct me where you see opportunities to educate.  I am by no means a economist of any measure but believe my thinking is right on. 

 

India's currency is in trouble because it is declining in value against mainstream currencies (ie. the USD).  This type of volatility is not good for commerce ESPECIALLY when it comes to large scale consumables like energy.  This is a perfect opportunity for Iraq to "help India out". 

 

Recall the articles that expressed India turning away from Iran and toward Iraq for its energy needs (oil)?  Well this has brought major business to the country of Iraq as they edged Iran in the market-war.  Iran has been forced to concede its once dominant position in the oil game.  Iraq wants to solidify this business from India and it looks as if will do just that should these negotiations pan out. 

 

So this is how it will work.  After negotiations between the central banks of both countries, imports will be nominated in the exporting country's local currency.  In other words the Iraqi Dinar will become more desirable for trade negotiations instead of USD for import transactions into India.  In this way India does not have to fear waking up tomorrow and discovering that their importers must pay more for oil than they did on yesterday due to a change in their currecy's value against the internationally denominated USD.  They will be able to stabilize their import prices on oil through negotiations betweeen the central banks of Iraq and India. 

 

Iraq on the other hand encourages India to invest in Iraq which creates even a greater win for the country. 

 

(In a microcosmic type of way it is similar to what the United States did with Saudi Arabia to create the almight petro dollar.  SA would force importers of oil to pay using the USD and then SA would turn around and invest that money back into the US.) sorry for getting off topic here

 

So if this pans out I think it is a strong move for Iraq.  Thoughts?

 

ps.  here is another corroborating article on why Iraq wants to secure this market share of oil exports to India. 

Edited August 23, 2013 by TrinityeXchange

[SgtFuryUSCZ]

***///

 

TeX... sounds pretty clever....

 

we like your post very much.

 

Thank you! 

[TrinityeXchange]

thanks Sgt! 

 

It looks like a compact has been inked folks.  I think they've all but signed on the dotted lines. 

[SnowGlobe7]

or have they signed and just not implemented???

 

A cat can hope....

 

i love the way you think TeX

[SgtFuryUSCZ]

***///

 

True, SNOWGLOBE...

 

how often we have seen them "sign" only to have something go awry and some shoes fly and

different factions start raising objections....

 

Hopefully THESE two entities will play well together.!

May India & Iraq BOTH PROSPER through this agreement.

[hame55]

I love it, I love it, I love it!!  Here is my take on this.  Please correct me where you see opportunities to educate.  I am by no means a economist of any measure but believe my thinking is right on. 

 

India's currency is in trouble because it is declining in value against mainstream currencies (ie. the USD).  This type of volatility is not good for commerce ESPECIALLY when it comes to large scale consumables like energy.  This is a perfect opportunity for Iraq to "help India out". 

 

Recall the articles that expressed India turning away from Iran and toward Iraq for its energy needs (oil)?  Well this has brought major business to the country of Iraq as they edged Iran in the market-war.  Iran has been forced to concede its once dominant position in the oil game.  Iraq wants to solidify this business from India and it looks as if will do just that should these negotiations pan out. 

 

So this is how it will work.  After negotiations between the central banks of both countries, imports will be nominated in the exporting country's local currency.  In other words the Iraqi Dinar will become more desirable for trade negotiations instead of USD for import transactions into India.  In this way India does not have to fear waking up tomorrow and discovering that their importers must pay more for oil than they did on yesterday due to a change in their currecy's value against the internationally denominated USD.  They will be able to stabilize their import prices on oil through negotiations betweeen the central banks of Iraq and India. 

 

Iraq on the other hand encourages India to invest in Iraq which creates even a greater win for the country. 

 

(In a microcosmic type of way it is similar to what the United States did with Saudi Arabia to create the almight petro dollar.  SA would force importers of oil to pay using the USD and then SA would turn around and invest that money back into the US.) sorry for getting off topic here

 

So if this pans out I think it is a strong move for Iraq.  Thoughts?

 

ps.  here is another corroborating article on why Iraq wants to secure this market share of oil exports to India. 

Yes I think you are right.

SA did invest in America - in real estate, treasuries - and powerful dynasty families like the Bushes. The House of Saud and Bush were (are) very intimate. Not just oil, but weapons (Carlyle Group and daddy Bush).

India has become a big player, so this kind of business would help both local currencies.

And I am afraid it will also help break the back of the greenback as the world's premiere reserve currency -which in the long run is a good thing - primarily because, many American don't know this, but the petrodollar fuels America's military/economic empire.

Cut the legs out of the dollar, and there goes the empire - also better for us because our kids won't fight in so many business wars...

[PrettyKitty]

This all sounds good to me. Thanks to all for sharing. (meow)

[Butifldrm]

Trinity, so do you feel there will be no implications for Iraq or India bypassing the dollar, for oil trades?

[chess]

Yes I think you are right.

SA did invest in America - in real estate, treasuries - and powerful dynasty families like the Bushes. The House of Saud and Bush were (are) very intimate. Not just oil, but weapons (Carlyle Group and daddy Bush).

India has become a big player, so this kind of business would help both local currencies.

And I am afraid it will also help break the back of the greenback as the world's premiere reserve currency -which in the long run is a good thing - primarily because, many American don't know this, but the petrodollar fuels America's military/economic empire.

Cut the legs out of the dollar, and there goes the empire - also better for us because our kids won't fight in so many business wars...

 

DEAR IRAQ:  PLEASE RV, NOW, BEFORE OUR DOLLAR LOSES MORE VALUE.  I NEED A WORTHWHILE CASH-IN!

[TrinityeXchange]

Trinity, so do you feel there will be no implications for Iraq or India bypassing the dollar, for oil trades?

I am more apt to believe that Maliki has secured the blessing to do so.  When we see Zebari and Maliki flying around to meet with prominent international heads of states, I believe we are not told half of what was discussed in those meetings or at tea after the public portion of the meetings after the cameras shut off and reporters go home. 

 

There are a lot of people who stand to profit from Iraq suring up trade agreements like these. 

 

I for one DEFINITELY have to get more capital into the ISX.  The economy of Iraq is poised to explode and its bourse will the indicator. 

[Boozer]

I'm for it now RV, RI , Just do it

[sandfly]

YEP THANKS

[yota691]

India's prime minister after his meeting with al-Maliki "agreed to turn our relationship in energy trading to a strategic partnership

Friday, August 23 / August 2013 21:30

 

[baghdad - where]

Prime Minister Manmohan Singh in a press statement after meeting today with Prime Minister Nuri al-Maliki that he conveyed to the owners admire the ability and determination of the Iraqi people, and on his own, at a time when Iraq to recover from war and conflict, and the establishment of democracy, restore order, and improve security and revive the economy .

In particular news told all of Iraq [where] from New Delhi that the program Maliki's visit today was eventful has met all of the Indian President and Prime Minister and Minister of Foreign Affairs and a group of industrialists in India.

The Prime Minister of India, in a speech to reporters after the meeting that it is a pleasure to welcome Prime Minister Nuri al-Maliki on his first visit to the State of India. We are honored that he has such a visit despite pressing domestic commitments and continued unrest and conflict in Iraq. We deeply appreciate the importance that it attaches to the relationship between our two countries.

He went on saying that relations between India and Iraq based on a strong foundation. We have historically close ties of trade, culture and spirituality honestly completed the goodwill between the people of our two peoples. This alone ensures we can always remain our close relationships. Iraq has long been one of the most important partners in West Asia. It is as it recovers from the recent conflict, it also highlights our second largest source of oil, which represents more than 12% of our imports last year. The aim of the current visit of Prime Minister Nuri al-Maliki in the transfer of a new dynamic to our relationship and developed on a large scale.

 

The Prime Minister of India, he and Prime Minister Maliki agreed that our relationship in energy trading must be transformed into a strategic partnership, including joint ventures in oil exploration, and petrochemical complexes, fertilizer plants.

Singh said that the Memorandum of Understanding on cooperation in the field of energy provides a very strong framework to further diversify our cooperation in this sector, and we look forward to concrete progress in the near future.

 

He said, "We also agreed to expand and diversify economic cooperation we have, and which, as the Commission has identified common in our recent times, will cover areas such as agriculture and water resource management, pharmaceuticals, health care, information technology, infrastructure, and low-cost housing and trade.

 

He continued, saying, "Iraq was the largest export destination for Indian companies before the Gulf War. I assure Prime Minister Maliki strong interest from Indian companies to participate in the reconstruction efforts in Iraq and his ambitious plans to expand and develop its infrastructure.

 

And went on Prime Minister Singh said India was also active in the area of ​​capacity-building in Iraq, including in the field of higher education and health care. We have reiterated our support for re-building and institutional development in Iraq.

He said he and al-Maliki decided to add a new dimension to this partnership by agreeing to share what we have experience and knowledge in the field of agriculture and water management.

 

He said that Prime Minister Maliki and I also fruitfully exchanged views on international developments, particularly in West Asia and North Africa, stressing that peace, security and stability in this region are vital to both countries. As well as the establishment of a democratic and pluralistic societies.

He concluded by saying that India and Iraq are facing similar threats of extremism and terrorism. India believes that a strong and stable Iraq, a peaceful and united and democratically is in the interest of peace and security, regional and global levels. We have agreed to hold regular dialogue on these developments through consultations in the Ministries of Foreign Affairs. We also agreed to continue to strengthen counter-terrorism and intelligence cooperation.

 

The seal and the Prime Minister of India concluded by saying: I am looking forward to working with Prime Minister Nuri al-Maliki, especially in the area of ​​expanding and deepening bilateral relations. / End

Edited August 24, 2013 by yota691

[yota691]

NEW DELHI AND BAGHDAD ARE DISCUSSING THE SETTLEMENT OF TRADE PAYMENTS IN RUPEES

New Delhi - (Reuters) - Indian Commerce Minister said the government would discuss with Iraq, the possibility of settling trade payments in Indian Rupees step will help to stabilize the troubled currency.

Said Anand Sharma, Minister of Commerce, told reporters in response to a question whether India was considering rupee payment for Iraq: Yes, we will discuss how to use Amltena المحليتين.

[Butifldrm]

India unveils its quest for the use of local currency in trade with Iraq

 

24-08-2013 | (Voice of Iraq) -  Add a comment -    Range Press / Baghdad 

The Minister of Commerce and Industry of India, on Saturday, seeking his study of the possibility of using the process of local trade exchange with Iraq to counter the low equivalent exchange of Rbeh Indian about the U.S. dollar, and while stressing that his country is working on the signing of the import huge between the two countries, he called on Prime Minister Nuri al-Maliki Indian companies to invest in Iraq and exploit opportunities to provide commercial projects in various sectors. 

The minister said Indian Commerce and Industry Anand Sharma in a report published by the newspaper Economk Times of India and seen by (range Press), said, "India is considering the possibility of using the local currency in trade exchange with Iraq, in the wake of the face of the low rate of exchange of Rbeh Indian about the U.S. dollar." 

He added, Sharma said "the issue of payment of cost commercial transactions in local currency will be discussed during the bilateral meetings, to be held between Prime Minister Maliki and Minister Indians," stressing that "the terms of trade common Indian - Iraq up to nearly 21 billion U.S. dollars," noting " Work on the signing of agreements to import huge. " 

For his part, Prime Minister Nuri al-Maliki to call "Indian companies to invest in Iraq, there are great opportunities and broad areas in various agricultural sectors, health and education in Iraq." 

He said Iraqi Prime Minister Nuri al-Maliki, said on Friday that Iraq could "learn a lot" from the experience of India, noting that "India and Iraq complement each other," and while pointing out Indian President that his country wanted to share equally with Iraq in oil production, pledged its commitment to the development and progress of Iraq. 

He was Prime Minister Nuri al-Maliki arrived before noon, Thursday, 22 August 2013, to the Indian capital New Delhi on an official visit lasting several days. 

The Indian Foreign Minister, Salman Khurshid, visited Baghdad, at (19 June 2013), and met the next day his Iraqi counterpart, Hoshyar Zebari, to discuss ways to enhance bilateral relations and the development of "the foundations for future cooperation" between the two countries, as the face of the Indian minister official invitation Prime Minister Nuri al-Maliki to visit Delhi, revealing the approval of al-Maliki to meet them "after the month of Ramadan."

 

Read more: http://translate.googleusercontent.com/translate_c?depth=1&hl=en&rurl=translate.google.com&sl=ar&tl=en&u=http://www.sotaliraq.com/mobile-news.php%3Fid%3D113340&usg=ALkJrhiR6BY1ak_cbQsjJF5GrKQUhLN1sA#ixzz2cuIrAT42

[TBomb]

Another translation of Yota's article. Thanks Yota!

 

New Delhi and Baghdad are discussing settling trade payments in
New Delhi (Reuters)-Indian Commerce Minister said that the Government will discuss with Iraq the possibility of settlement of trade payments, Indian rupee, a move to help stabilize the troubled currency.

He said Trade Minister Anand Sharma told reporters in response to a question on whether India is considering pushing the rupee to Iraq: Yes, we will discuss how to use the local our currencies.

 

http://www.alqabas.com.kw/node/792014

[Roadrunner]

This is a good thing. We all know that financially India is not that important to the rest of the world, but if they are accepting the dinar somebody else will follow suit. It may be a small step but at least it is a step in the right direction for a change. It might take a few small steps to kick this thing off.

Roadrunner

[unirod]

This is a good thing. We all know that financially India is not that important to the rest of the world, but if they are accepting the dinar somebody else will follow suit. It may be a small step but at least it is a step in the right direction for a change. It might take a few small steps to kick this thing off.

Roadrunner

A $21 Billion USD step ! That's a mighty big step IMO!!

[Roadrunner]

A $21 Billion USD step ! That's a mighty big step IMO!!

Yeah it is. What I mean is only one country recognizing the currency is a small step, but it is a start.

Roadrunner