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

[Roadrunner]

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

The thing about trading with one country is that your currency has value there but maybe not anywhere else. Let’s say you have your own currency called the “Unirod” and I have my own currency called the “Roadrunner”. If you were buying X amount of goods or services from me and using the Unirod to pay for them and I am buying X amount of goods or services from you and paying with the Roadrunner, both currencies would have value to us. I would have your currency to back the value of mine and you would have my currency to back the value of yours. This doesn’t mean that anyone else would have to accept either one. Now if we started trading with other people on the forum using these currencies, they would increase in value as more people started accepting them. They need to stop using the dollar and trade with their own currency. Not just with India, but with everybody. When they do, it will increase in value. I know that I am not an economist and probably not nearly as well versed in this area as some people on the forum, but this is the way I see it.

Roadrunner

Edited August 24, 2013 by Roadrunner

[lakedreamer]

This is another blow to the dollar.  I just hope Iraq RVs before the dollar loses so much value our return is basically worthless.   I'd like to buy some stuff with my dinar exchange before it costs $100  for a loaf of bread.

[zul]

They will be doing currency swap...bypassing the cost of doing biz in USD.

[hame55]

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

I would say India is bigger than we think - 1.2 billion population, most of them educated and speak fluent English

Many of our businesses are outsourcing over there and they are part of the BRIC nations trying to undermine the dollar global reserve status by joining to make a powerhouse cartel (Brazil China Russia and...India)

[easeandpeace]

Hi Trinity,

Haven't communicated with you in a long time and tried to send you a message but couldn't get it to send to you. Will you please contact me so I can ask you a question.  Easeandpeace

 

Found this very interesting that Iraq and India are figuring out the currency thing as I know personally of an Indian friend that had to go through a very convoluted process to buy his dinar, he could not buy it in India so now it seems as if the two countries are acknowledging the dinar as tradable. I find this encouraging for the idea of moving towards IQD being internationally traded.  

 

Bread a $100 a loaf...oh please lord no....but come on you middle agers who ever thought we would see the day that bread would be as expensive as it is today?  The hard thing is that prices have risen so much while incomes have flat lined for several decades. GO RV....

[Butifldrm]

  

Adoption of local currencies in the Indian Iraqi dealings

08/27/2013 12:00 AM 
 

BAGHDAD - morning 
praised a member of the Finance Committee MP Dler capable, Bembagesat both Iraq and India to agree to be economic transactions and trade of the two countries in local currencies, stressing that it will support the value of the dinar and make it desirable internationally. 
said capable in a press statement that talks of the Iraqi delegation headed by Prime Minister Nuri al-Maliki and a ministers and economists, with the Indian side about the accreditation in business dealings between the two countries on local currencies and not the dollar and this measure will support the value of the dinar and improves positioned internationally. 
said: that the Iraqi dinar is strong and covered with reserves much of hard currency and gold, especially during the recent period improved exchange rate dinar and significantly against the dollar, making the countries of great economic such as India maintains the Iraqi dinar and deal him, this is an indicator of economic well for the Iraqi dinar. 
This was confirmed Minister of Indian that both Iraq and the Indian Tbagesoa on strengthening bilateral economic relations, and the possibility of adopting local currencies Iraqi and Indian in the business dealings of the two countries instead of the U.S. dollar.

 

http://www.alsabaah.iq/ArticleShow.aspx?ID=52851

 

08/27/2013 12:00 AM 
 

BAGHDAD - morning 
praised a member of the Finance Committee MP Dler capable, Bembagesat both Iraq and India to agree to be economic transactions and trade of the two countries in local currencies, stressing that it will support the value of the dinar and make it desirable internationally. 
said capable in a press statement that talks of the Iraqi delegation headed by Prime Minister Nuri al-Maliki and a ministers and economists, with the Indian side about the accreditation in business dealings between the two countries on local currencies and not the dollar and this measure will support the value of the dinar and improves positioned internationally. 
said: that the Iraqi dinar is strong and covered with reserves much of hard currency and gold, especially during the recent period improved exchange rate dinar and significantly against the dollar, making the countries of great economic such as India maintains the Iraqi dinar and deal him, this is an indicator of economic well for the Iraqi dinar. 
This was confirmed Minister of Indian that both Iraq and the Indian Tbagesoa on strengthening bilateral economic relations, and the possibility of adopting local currencies Iraqi and Indian in the business dealings of the two countries instead of the U.S. dollar.

Edited August 26, 2013 by Butifldrm

[dontlop]

I hope India accepts dinars for rupies, maybe we can buy rupees with our dinar and then we can exchange rupees on forex

Edited August 27, 2013 by dontlop

[Rasica]

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/

 

 NON-SEQUITUR!

This is another blow to the dollar.  I just hope Iraq RVs before the dollar loses so much value our return is basically worthless.   I'd like to buy some stuff with my dinar exchange before it costs $100  for a loaf of bread.

THE EXCHANGE WILL BE PROPORTIONAL.

[hame55]

I hope India accepts dinars for rupies, maybe we can buy rupees with our dinar and then we can exchange rupees on forex

Interesting 

depends on the rate...

And what will our tax be?

 

You know this whole 50% or more tax thing really TICKS me off

this is a currency exchange... SOBs

[yota691]

Adoption of local currencies in the Indian Iraqi dealings

 

 

         

08/27/2013 12:00 AM 

BAGHDAD - morning 

praised a member of the Finance Committee MP Dler capable, Bembagesat both Iraq and India to agree to be economic transactions and trade of the two countries in local currencies, stressing that it will support the value of the dinar and make it desirable internationally. 

said capable in a press statement that talks of the Iraqi delegation headed by Prime Minister Nuri al-Maliki and a ministers and economists, with the Indian side about the accreditation in business dealings between the two countries on local currencies and not the dollar and this measure will support the value of the dinar and improves positioned internationally. 

said: that the Iraqi dinar is strong and covered with reserves much of hard currency and gold, especially during the recent period improved exchange rate dinar and significantly against the dollar, making the nations economic as large as India maintains the Iraqi dinar and deal him, this is an indicator of economic well for the Iraqi dinar. 

This was confirmed Minister of Indian that both Iraq and the Indian Tbagesoa on strengthening bilateral economic relations, and the possibility of adopting local currencies Iraqi and Indian in the business dealings of the two countries instead of the U.S. dollar.

 

[Biker]

Good find Yota, To me looks like there trying to figure out a way to make there money tradeable with out RVing it. Then it will cost them Nothing.

[Maja1962]

Adoption of local currencies in the Indian Iraqi dealings

 

 

         

08/27/2013 12:00 AM 

BAGHDAD - morning 

praised a member of the Finance Committee MP Dler capable, Bembagesat both Iraq and India to agree to be economic transactions and trade of the two countries in local currencies, stressing that it will support the value of the dinar and make it desirable internationally. 

said capable in a press statement that talks of the Iraqi delegation headed by Prime Minister Nuri al-Maliki and a ministers and economists, with the Indian side about the accreditation in business dealings between the two countries on local currencies and not the dollar and this measure will support the value of the dinar and improves positioned internationally. 

said: that the Iraqi dinar is strong and covered with reserves much of hard currency and gold, especially during the recent period improved exchange rate dinar and significantly against the dollar, making the nations economic as large as India maintains the Iraqi dinar and deal him, this is an indicator of economic well for the Iraqi dinar. 

This was confirmed Minister of Indian that both Iraq and the Indian Tbagesoa on strengthening bilateral economic relations, and the possibility of adopting local currencies Iraqi and Indian in the business dealings of the two countries instead of the U.S. dollar.

 

 

1 INR = 0.0151939 USD ($1.00 = 65.816 INR)

1 IQD = 0.00086133 USD ($1.00 = 1161 IQD)

 

Something doesn't make sense between this article and the reality of the exchange rates, unless they know something that we don't know... 

 

Great find, Yota! 

 

GO RV!!!!!!!!!!!!!!!

[sandfly]

GO RV

[hammer911]

1 INR = 0.0151939 USD ($1.00 = 65.816 INR)

1 IQD = 0.00086133 USD ($1.00 = 1161 IQD)

 

Something doesn't make sense between this article and the reality of the exchange rates, unless they know something that we don't know... 

 

Great find, Yota! 

 

GO RV!!!!!!!!!!!!!!!

Maja, I am not a math wizard by any means but, could you or some one figure up what the dinar would be worth if it just came up even with the India currency?  Thanks.... And great find Yota, I think this India ordeal is possibly the best news since the chapter 7 lifting and possibly the investment... GO RV!!!~~~

[Maja1962]

Maja, I am not a math wizard by any means but, could you or some one figure up what the dinar would be worth if it just came up even with the India currency?  Thanks.... And great find Yota, I think this India ordeal is possibly the best news since the chapter 7 lifting and possibly the investment... GO RV!!!~~~

 

No problem, Hammer... if the IQD was on par with the INR, it would be worth US$0.0151939, or 1 1/2 cents.

 

My "confusion" with this scenario is there has not been "during the recent period improved exchange rate dinar and significantly against the dollar," unless I'm missing something with the word "significantly."  So it's puzzling to suppose tying the IQD to the INR, which is worth only 1.5 cents on the dollar, will improve the value of the dinar.  That is, unless we are not privy to all the facts in this matter...

 

GO RV!!!!!!!!!!!!!!

[2fast4u2c]

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. 

This is very bad!  They are talking about eliminating the petro dollar to purchase oil among other things.....this is not good.  If countries start using other currency besides the dollar - our dollar will plummett!  And this was the last straw that got the U.S. to go after Saddaam.  It wasnt WOMD, it was threatening the petro dollar.  This is IMO.

[Xet]

I actually see this as a bad thing, or at least unhelpful. Iraq and India want to trade between each other in their local currencies because they are somewhat equal and less than the dollar, If Iraq had any thoughts that their IQD would soon be 1:1 or greater than the dollar, how would this deal still make sense? They would be adding a lot more IQD to the market then there is currently, while knowingly giving India lots of Dinar that will soon be worth a lot more than the goods they received?? Who would do this on purpose?

 

I normally try not to be pessimistic as there already is enough of that, but I just don't see this leading to an RV. It could possibly lead to a long term growth in the IQD, as it creates a market that requires its use. That's not really why we are here though, we want an RV.

[hame55]

This is very bad!  They are talking about eliminating the petro dollar to purchase oil among other things.....this is not good.  If countries start using other currency besides the dollar - our dollar will plummett!  And this was the last straw that got the U.S. to go after Saddaam.  It wasnt WOMD, it was threatening the petro dollar.  This is IMO.

You're right. IMO spot on - but this has been going on for a while. And other countries know we cannot fund our economic empire's protector - the US military - without the dollar as the reserve currency. That is why they are trying to bring it down.

And they will. Eventually

[sandstorm]

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.

Wow. I think you guys and gals are jumping the gun here. Iraq can trade with India and still lop( delete three zeroes). The old dinar will have a time period. India would easily be able to exchange for new dinars.

Point being, this is irrelevant because it still doesn't dictate whether Iraq rvs or deletes three zeroes.

Is it a good sign. I'd say so, but it doesn't mean squat as far as a possible profit

[hame55]

I actually see this as a bad thing, or at least unhelpful. Iraq and India want to trade between each other in their local currencies because they are somewhat equal and less than the dollar, If Iraq had any thoughts that their IQD would soon be 1:1 or greater than the dollar, how would this deal still make sense? They would be adding a lot more IQD to the market then there is currently, while knowingly giving India lots of Dinar that will soon be worth a lot more than the goods they received?? Who would do this on purpose?

 

I normally try not to be pessimistic as there already is enough of that, but I just don't see this leading to an RV. It could possibly lead to a long term growth in the IQD, as it creates a market that requires its use. That's not really why we are here though, we want an RV.

The RV could come first, before these negotiations lead to actual implementation

[sandstorm]

I actually see this as a bad thing, or at least unhelpful. Iraq and India want to trade between each other in their local currencies because they are somewhat equal and less than the dollar, If Iraq had any thoughts that their IQD would soon be 1:1 or greater than the dollar, how would this deal still make sense? They would be adding a lot more IQD to the market then there is currently, while knowingly giving India lots of Dinar that will soon be worth a lot more than the goods they received?? Who would do this on purpose?

 

I normally try not to be pessimistic as there already is enough of that, but I just don't see this leading to an RV. It could possibly lead to a long term growth in the IQD, as it creates a market that requires its use. That's not really why we are here though, we want an RV.

what is it, like 70 trillion in unfounded liabilities. I'd say we are already screwed. Just a matter of when, not if

And in my opinion. If Iraq is going to rv to historic levels, it must happen before they start pairing them internationally. Afterwards, they'd be throwing the whole trade system into a whirlwind. Trade is desired to be stable, not massive swings

[hame55]

what is it, like 70 trillion in unfounded liabilities. I'd say we are already screwed. Just a matter of when, not if

Could very well be. If there are truly 70T in unfunded liabilities, it will RD.

It would have to according to conventional economics.

However....

[sandstorm]

Why would Iraq pay India 1166 dinars, just to rv......only to get 1 dinar back from India in trade. Wouldn't they be destroying their wealth? Think

Could very well be. If there are truly 70T in unfunded liabilities, it will RD.

It would have to according to conventional economics.

However....

oh yeah. It'll rd alright. Once the u.s. loaf of bread is 10,000 dollars

Inflation is coming, probably followed by complete bankrupcy of our government retirement systems. When states have trillion dollar pension liabilities, I'd safely assume some of us will never see all the retirement savings we've put into it. Matter of when

[k98nights]

And in my opinion. If Iraq is going to rv to historic levels,

 

That's what we're all here for!

[Butifldrm]

Indian newspaper: Indian Iraqi oil agreement extends [13] years to produce 645 million barrels

Tuesday, August 27 / August 2013 09:20

 

 

[Follow-up - where]

 

The newspaper [The Economic Times] Indian in her article on the visit of Prime Minister Nuri al-Maliki to India that the agreement oil, which took place between the two countries during the visit extends for [13] years to explore for oil in Iraq is doing Indian companies in the site Iraqis in the Middle Euphrates region

Falt that is expected to produce 645 million barrels of this site within the framework of a long-term cooperation agreement in the field of energy. "

Prime Minister Nuri al-Maliki has returned Aalahd to Baghdad after concluding an official visit to India four-day visit where he met senior leaders and officials in India and signed during which several agreements common to exchange high-level visits in the fight against terrorism and the areas of energy, oil, transportation, housing, health, education and water resources as well as discuss international issues, notably Syria and Afghanistan.

 

It was a joint statement on the visit have pointed to the group fields Euphrates stated that "the Indian side welcomed the offer made ​​by the Iraqi side, which was presented during the last meeting of the Joint Committee on the development of the fields of the Middle Euphrates undeveloped a rump and rump western and Morgan on the basis of nomination for the oil companies in the public sector Indian and Indian side agreed to study and submit a proposal to the Department of petroleum contracts and licensing negotiations. "

 

"It was agreed in a long-term supply of crude oil and the extent of credit is better where he proposed the Indian side long-term agreement [-running 10 years] to met the needs of crude oil increased Refineries new has confirmed the Iraqi side to meet the needs of India, and asked the Indian side condition better, such as cancellation of accreditation requirements Almsendi [LC] to pay the dues of crude oil and increase the free grace period of [30] to [60] days has been the Iraqi side agreed to consider it after obtaining the relevant government approvals. "

 

And project Nasiriyah integrated "side thanked the Indian side of the Iraqi rehabilitation process initial Indian companies like ONGC Videsh Limited, MRPL and Reliance to participate in the licensing round draft Nasiriyah and to take the Indian companies into consideration, and at the request of the Indian side, side agreed Iraq to consider the pre-qualification of the Indian Oil Corporation Limited Oil Corporation Limited for the manufacturing project [after extraction]. "ended.

http://translate.google.com/translate?sl=ar&tl=en&u=www.alliraqnews.com%0A%0A