India, UAE to Use Rupees for Trade | Vantage with Palki Sharma
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- Опубликовано: 8 сен 2024
- India, UAE to Use Rupees for Trade | Vantage with Palki Sharma
India and the UAE have signed a pact to promote trade settlement in local currencies. The rupee-dirham trade is expected to save dollar reserves and insulate bilateral trade from foreign volatility. How big is this agreement for rupee's global ambitions? What are the challenges? Palki Sharma tells you.
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Vantage is a ground-breaking news, opinions, and current affairs show from Firstpost. Catering to a global audience, Vantage covers the biggest news stories from a 360-degree perspective, giving viewers a chance to assess the impact of world events through a uniquely Indian lens.
The show is anchored by Palki Sharma, Managing Editor, Firstpost.
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Is the domination of the US dollar under threat?
Leave a comment and let us know your thoughts
Since Palki Sharma joined First post I saw the rise in subscribers for this channel within few months sky 🚀 rocketed
Using fiat currency for trade is insane for those trading real products for paper promises. So the USA dollar and the India Rupee are liabilities that lose value over time and really worthless for trade.
Smart move India
Currency exchange to US $ is expensive not for free when buying or selling US $
With the ever widening trade deficit with UAE, it won't be long before UAE will call this arrangement off.
India can do this, they can use dollars for the deficit part and for the remaining balanced part they can use their respective local currencies while doing business with another country.
Excellent idea. 👍
so moving away from usd was a ruse?
That would ok with Russia too except yuan is needed for the deficit which is huge for Russia. Problem is that India prefer USD instead of Yuan. But then Russia cannot use USD.
@josefbayor4169 you meant point 1) grab all india's money and stopped all India's trade? India can go back to russia and others, if they want india back.
@josefbayor4169
8 minutes ago
@biggpicture2930 What if the sanction king sanctions India?
@josefbayor4169 They don't want USD because:
1) They are afraid of their USD being grabbed away. This is most frightful to them, and can see it clearly!
2) USD has Zero terminal Value. Excess trade with USA is actually a 'ZERO' in long run. So USA will only need to import and not export. It prints and just buys, The earned USD reserves-Treasury Bonds investment or US's borrowing will be inflated away by with USD printing Press. China realize that, so it spend on making BRICKs with USD reserve. This is not so frightful because is less obvious and in the long run, we all be dead! But the point is that there is no need for the USA to do anything but maintained USD system at all cost.
It is a win 🏆win suitation for UAE 🇦🇪 and India 🇮🇳 they will save on foreign exchange Bilateral trade between India and the UAE was around $85 billion in FY23. Government officials indicated that New Delhi is looking to work out a way to hedge exchange rate risks in the rupee-based trade to limit losses for Indian exporters.
So is it a win-win, when UAE oil is twice that of russian oil? WIN-WIN for stupid, for others , it depends on the price.
UAE is not only importer but also investor in india if they have excess rupees they will invest in india...
UAE will never back down from this deal
India does back down so why not UAE?
The migrants of India, in UAE, if their transfer through UPI, either currency of choice, the visitors flow, will boost up, traveling and spending economy.
@@biggpicture2930 india won't and UAE won't... This deal is a win win
A post here explained that there there will no excess rupees. The excess will be in usd.. Moreover, India is paying higher than the fidscounted russian oil so loss for india financially but a win for the deluded mind.
Unless India exports finished products than selling raw materials...the trade deficit will be there. This more depends on our people and business environment....
The US dollar is under the threat & it is unstoppable as the dollar dependency adversely affecting the economy of many developing countries. It may take several years to completely avoid/abandon the Dollar. When it happens US sanctions will have no affect on the international trade.
No India is helping the usa
@@cheemengsiew288to get rid of Dollar 😂
@@prabhakar0076 to keep the dollar
No it not sorry, but I don't think you know what the difference is between a trade currency and reserve currency.
@@Madame702 can we buy oil in rupees after this? or what
Set a separate target for rupee and other currency trade. Eg : with Bangladesh trade in rupee upto 3billion. So simple
India will use Rs. for import of petroleum from UAE. In return UAE will use Rs to pay Indian expat workers who needed dollars. This will be a wash, but still no dollar dominance.
Choice of currency, But conversion side based on various factors.
I love the way how the brics are going let's hope everybody can work together in the future no need for any War just trade
But then India
@@cheemengsiew288the final nail in the Dollar coffin from inside and outside😊
Lol. You guys don't get it. The more nations use their currency in foreign trade, the more the dollar will remain the only global currency. In other words, the dominant currency. The right would have been that 100% of BRICS countries use only the yuan or the future BRICS currency (which India has pulled out of) in 100% of all their international transactions. Anything less than this and the dollar followed by the Euro will forever tower and remain the 2 dominant global currencies.
Russia give Oil to India.
In return , India gives you best class IIT toppers,IT services, technical support, highly automated Software applications for your manufacturing process.
+ scam call center
EXCELLENT 👌👌👌...
VANDE MATARAM 🇮🇳🇮🇳🇮🇳...
I propose introduce a common currency like BRICS for countries like India, China, Russia, UAE etc. which is the better way instead of going with Rupee. Rupee has certain limitations. If India has trade deficiencies the Rupee deal would fail. Common BRICS is the ideal way.
agree, brics should be a common denominator currency but rupees and other currencies can options. to go back to usd when there is deficit basically extends usd hegemony
If you want national currency to be choice currency, it is USD or upcoming Yuan. USA owns the printing press and Yuan is easily used for payment of goods-140 nations' top trading partner. All other currencies will want the deficit/surplus in USD or Yuan. So no hope for India. The problem with these is all will start printing their currencies like crazy. UAE will buy all of India, and then India will print all the possible money to buy UAE. So all this is doomed to fail!!
Only the trust worthy nations will survived. If china play its card right. It will be a choice fiat currency. Brics is a good idea. It is not a fiat currency, backed by gold. If accepted. India will have a say, otherwise Yuan will be a choice currency. China wants brics because it will kill off USD much faster and have a shared implementation. However, Yuan is good and acceptable for china. All fiat currencies will be only good for its own country, and not for international trade, if brics is adopted and become norm.
Usd back by gold, went bankrupt in 1971. Can rupee be a global currency backed by gold. No fcuking way. India got plenty of gold domestically but not enough. Paranoia and sense of entitlement = indians
Agreed
How Will the Rs vs Durham exchange rate be fixed ? Will USD be the implicit conversion mode.?
Using Gold price reference as exchange rate
V. comprehensive study!
Yes India has to v. carefully handle this issue of 100% convertible Rupee trade with foreign currency
Long live India US relationship and friendship from Pakistan 🙂, best regards from Pakistan 🙂.
Madam I usually don't share your views on China, because it's your neighbors, and we think you guys should live good , but another note you're a very smart journalist you keep us informed on a lot of issues that we wouldn't have thank you very much for your great job
Russia wanted India to supply military spares for their war against Ukrain.
India refused. This is the issue. Mind you, most of Indian military equipment are of Russian origin and we have a manufacturing agreement and we manufacture these equipment as well.
Why can't India introduce common currency.. Like brics?
Consider gold rupee as a common currency
Example - India trade with UAE with gold rupee
UAE can do trade with Russia using gold ruppe vice versa
Can RBI implement this...
Because they don't want the Chinese Yuan to be dominant. They are small minded.
Do you mean to peg rupees with gold, if we do that it won't at all be beneficial for a developing economy like India.
It's not true that you're no longer impacted by the dollar, at the end of the day, the UAE dirham is pegged to the dollar so if the dollar gets stronger so does the UAE dirham thereby directly impacting the Indian importers.
USD is indeed a threat to any other currency. India's wealth has been wiped out several times over on account of depreciation against UDS.
Over all, in the international trade, India is a net importer. That is the issue which arises when rupee trade is agreed to. Growth in Indian exports is the only remedy. India is on the right track. Last financial, Indian exports have crossed USD 700 billion.
The goods that I'll buy from India are their Royal Enfield classic bikes, BSA classic bikes {coming soon} spices and their ivermectin.
Waaah ❤..to the point n concluding vthout bias
AED is pegged against USD for several decades now. If the USD gets stronger, so does the AED. This approach in theory is flawed. Perhaps both countries can lock an exchange rate for this bilateral currency trade purpose.
Even if currency fluctuation risks remain, we don't need to spend from USD reserves and also Rupee we are paying has to be invested or traded back with India.
Gold backed Asian currency is the only solution.
There are efforts to do foreign trade mix currencies, for example in this case Drihams accumulated by exporting to UAE can be used to buy oil from Russia, similarly UAE can use accumulated INR to trade with other countries.
it can be complicated and even costly for pooerer countries in needing to managing many different currencies and opens to 'leaks'. brics currency is a better alternative
@@patrickgzIndia has pulled out of the BRICS currency negotiations
@@francoislechanceux5818 oh my. india is getting way ahead of itself. hope this news is only a temporary setback for india. maybe some 'settlement' with china will put india at ease
If you want national currency to be choice currency, it is USD or upcoming Yuan. USA owns the printing press and Yuan is easily used for payment of goods-140 nations' top trading partner. All other currencies will want the deficit/surplus in USD or Yuan. So no hope for India. The problem with these is all will start printing their currencies like crazy. UAE will buy all of India, and then India will print all the possible money to buy UAE. So all this is doomed to fail!! Look who is cheating? The Scam king?
Only the trust worthy nations will survived. If china play its card right. It will be a choice fiat currency.
@@biggpicture2930 I find it fascinating the way all those on these imaginary cruises of dethroning the dollar are all always ignoring or sidelining the euro. Really fascinating. Yet the Euro is 10X more important in terms of global wealth reserves than the yuan. Yet the euro is totally convertible while the yuan is not. Yet the GDP of the EU is superior to the GDP of China. Can anyone explain this strange idiocy to me?
The UAE's Dirham had been pegged to the US dollar since 1997 at the rate of 1 USD = 3.6725 AED. Hence, Palki's statement, "Your import bill will no longer depend on the US dollar," in this instance is inaccurate and misleading.
True de-dollarization can only be achieved when we adopt a truly global cryptocurrency. Right now, it looks like Bitcoin could be it. The future is going to be radically different. Looking forward to saying goodbye to the US Dollar and with it, USA's hegemony. 👍
Sure, hashing algorithms used in crypto currencies were developed by U.S. intelligence agencies specifically for export. Count your fingers after you shake hands with the U.S.
The problem with Cryptocurrency is that they are not backed up like sovereign currencies. Also sovereign nations will never give up their right which is also a power to issue theie own currencies.
Global Cryptocurrency is a pipe dream.
If BRICS can come up with their own currency and it is digitally accepted like UPI majority of the population that will be a big deal but the odds of that happening also looks bleak because of all the geo-politics.
For now enjoy hegding & trading in the cryptomarket. Make as much as you can and replace them with real assets like real estate or an enterprise that will guarantee returns.
Too much adulterated vodka. Keep dreaming pal.
@@kiraan2610 Some valid points there. Not denying that it won't be easy because nations won't be willing to give up without a fight. Well, it's happening as we speak, so..
On the flip side, you can see institutions like Blackrock flipping from naysayers to evangelists for Bitcoin. So, don't be too quick to dismiss crypto, especially decentralized ones.
With that said, I agree one needs to be fairly well-hedged. I am. I have a basket of crypto in addition to traditional investments. I've thrown a few big ones on a smattering of alternative investments with the credo of "let the chips fall where they may". So, yeah... interesting times, nevertheless. Let's see how it all pans out. Wishing me and everyone else good luck. 👍👍
UAE can pay Indian and bangladesh workers in rupees. Infact it can pay china in rupees for their purchases, as deficit is set to grow to 100billion this year. If India seeks it's payment for the oil sales in rupees, then countries purchasing the oil would seek where there is excess rupees with countries and would get them, then this issue should soon be solved.
This reporter is really beautiful I am on love 💕 with her 😍😍
See her reporting about your country pakistan.
US should not have weaponised dollar against Russia. This has sent shivers in world.
People would not see the problem with the dollar if the U.S. did not abuse it.
4:18 THINK IT ALL THE WAY THROUGH
As with everything in life, you have to ask why do we want more rupee trade? If the answer is to boost our ego, we are more likely going to lose. If the answer is to put the US dollar down, we are going to lose. If the answer is to make life better for the import exporters, we can get somewhere!
BTW, Palki did point out the main difficulty- just like how we don’t want to trade in Bangladeshi takas, why would others want to trade in rupees? They are perfectly happy with dollars ! The answer to that is strengthening the rupee via strong and stable monetary policy! But that is very unsexy to talk 😮
We will be slaves for Dollar printing from thin air, we will pay the Dollar debt, we will act as West says. We will remove discounts for farmers as WTC say bcos Monsanto and West can't sell their GMO FOOSS for cheap in INDIA. we will buy expensive outdated Defense equipments but never manufacture in India and provide jobs. 1.5 billion people have to work accordingly for a mere Crores of aging West. India should be a Market for west, which will be seen as AID.
WE will import dumb products for Gold but export products for peanuts, there will always be deficit 😂 😂😂
India be focus rupees trade and banking setup other countries
Yes palki
Everyone wants to have its own currency replace the dollar but nobody wants the inconveniences.
Money with gold is the best ,,, 1=1 every country ,,this is true money
America's proxy war on Ukraine is being paid by the common man in India. US prints money out of thin air, this would create inflation in the US. This would appreciate the Indian rupee vs USD, because USD is depreciating. This would affect the Indian exports. So RBI would intervene and buy the dollars as forex reserves, to be used in international trade. So that India can still maintain the exports & not lose out to competition. This would again depreciate the rupee while keeping the USD appreciated. When INR is depreciated, it will inflate the prices in Indian economy. So the common in India will end up paying more in petrol prices, tomatoes and everything. So you see the game being played here ? America is having fun party going into a useless war - the Indian common man is paying more for his tomatoes. We are paying for that stupid war. This move by India - transacting in rupees directly - is small steps towards decoupling from the diabolical dollar.
Historically it is much worse than that. The biggest commodity of any country is human labor, and Europe has been buying Indian labor cheaply via 'value added' products. One of the secret ways wealthy countries continue stealing from poor countries. But if you try to solve it improperly then the poor countries get hurt even worse. Very difficult.
Hahaha.. All people in the world, including all the downtrodden people in the worst of slums, are subsidising American citizens, including the filthy rich billionaires. Just accept this absurdly unfair practices, because we keep propping the USD.
This move by India - transacting in rupees directly - is small steps towards decoupling from the diabolical dollar.
Well Said This move by India - transacting in rupees directly - is small steps towards decoupling from the diabolical dollar.
The USA invaded Ukraine? I didn't know that.
There is something fundamentally off here. Given any two nations, there will be a mutual imbalance of exports/imports between them. How come none of this anticipated when India had a pact with Russia? The news of Russia halting its usage of Rupee, is being delivered as if it is a new learning. Let's go back to econ 101.
I am hoping India will find a way to address this challenge eventually.
Because the Russians and other countries are playing with our egos! They say yes to boost our egos and backout when people are not talking 😅
India should pay closer attention to Lavrov's comment about the rupee several months ago.
The problem with UAE and India using the rupee is the same problem with Russia. After the UAE has a few billoin rupees it can't spend it will end. That's the advantage of the Brics currency. India does not need to have balanced trade with each and every country, it only needs overall balanced trade. But separately India may be hoping do what te uS does. print money to pay for oil. It won't work.
The trade is not in only india rupees that is also in Dirham, so it will not be problems to UAE . UAE is also doing investment and hoping better return after 5 to 10 years. Unlike Russia who wants immediate return because they are in mid of war.
UAE is not part of BRICS
AED is pegged with USD so if dollar rises AED rise so this is not going to make a difference you deal in dollar or rupee
Exactly. It's ultimately the same.
If the trade is more in RUPEE, how can DOLLAR increase 😂
@@prabhakar0076 What if trade is more in Dirham.??? Wont demand of Dirham increase???
Great 👍
This is good news.
AED is pegged to USD unlike Rouble, hence AED-INR rate will be fluctuating based on USD volatility, I suppose
Wow. Now india is on the way of being a superduperpower overtaking bangladesh
Palki❤
Beware of KARMA retribution of vicious sanctions and actions. u$ is a warmonger never a peacemaker.
Good for India. Trade in anything is fine, just avoid the dollar like the plague.
Interesting project, no doubt, but bound to a lot of technical problems like trade deficits. Another thing: no matter countries trade in their own currency the yankee dollar will keep its weight as a reserve currency, so what and where is the big challenge to the yankee dollar?!?
We need to reduce using US dollar by 90% instead we have to use local currencies
India is doing excellent job by making rupee a trade exchange currency
After Bangladesh, Sri Lanka, UAE and Indonesia finalised trade with rupee
Embarkment of trade in ₹ & د.إ is boost rupees and turn the world to adopt Bilateral trade in their own Currency 🇮🇳
What can uae buy with rupees?? Not that much, that's why even Russia wants yuan payment
Well UAE is India's third biggest trading partner. Bilateral trade is already above $50B. Their target is to achieve $100Bn by 2024,
Check your numbers before commenting.
@@sofiehannan2077 100bil in a 23tril total global trade value
Each countries, having their economic interest. That must be protect each country with their ability to manage. Vostro account must enhance to boost up,GDP. Trade balance , and its financial viability,very important.
Madam, what about 147$ billion worth of Russian money in rupees be leveraged? Any agreements with russia?
Uae will only accept a limited amount of indian rupees just like Russia bec there's no way to spent the rupees.
Make rupee the next gold standard.
This reporter is so serious and take rumours very extreme and serious 😂😂
We getting any news on the 150 yr old temple being broken in a certain 'pious' country? Bulldozer & ROCKET LAUNCHER being used 😖
BIG BOAST for India👏👏👏👏👏
yeah but what can we give
Its not compulsory to have 100% trade in same currency, so practically both countries whether under deficit or surplus can use it to the extent it matches the trade, for the rest they can still use dollars.
Volume is very low in all videos
New BRICS currency is the solution. What are the challenges?
It's literally Chinese Yuan only.
@@Damien_Mctyline maybe now. but not when more countries come in. opec+ countries will account for more
LINES IN THE OCEAN.....ONLY EUROPE
rupees have devlue 20x already to the dollars no wonder russia do not want rupees and want yuan for oil trade
The Chinese foreign minister Qin, as per the rumour mill, had an affair with a TV show host named Fu Xiaotian affiliated with Hong Kong-based Phoenix TV. And that he had a child out of wedlock with Fu, who is a US citizen.
There is a lack of clarity about who Fu’s husband is, which has added to the speculation about Qin being her child’s father.
Overseas Chinese media, including Mandarin language media based in Taiwan, have also intensely speculated about Qin’s alleged affair. They shared videos of Fu’s interview with Qin wherein they appear to be smiling while looking away at the horizon. Fu’s last tweet is seen as another piece of evidence. She posted three photos, including one where she is interviewing Qin. She hasn’t tweeted or posted on Weibo since 11 April.
If the rumours about Qin’s affair are true, Chinese President Xi Jinping has a difficult task ahead of him. Xi promoted Qin to the role of foreign minister over other senior diplomats because of their shared ties. Infidelity rumours would be challenging to hush away as Xi has made it a point to promote cadres with a good track record. Qin’s example would poke a hole in that façade.
The other possibility is that both rumours about Qin’s ill health and the affair are true, which means Xi could slowly use the former to sideline one of his close confidants. Alternatively, all rumours are a bit of fluff, and Qin is not keeping well.
We will know about his fate in the coming weeks.
Interestingly, the Ministry of Public Security of China has launched a new campaign to inform the public about misinformation and build a solid ‘national security barrier’.
why not create south Asia rupee = wouldn't that make it stronger
So who would control it? Obviously the country with the strongest military at any moment. You could call it "dollar 2.0" or "the Asian dollar" so people will know to be careful.
Instead of focusing on pushing the rupee to some kind of international currency, India should focus on improving its exports, as of today India exports to the globe is mediocre. You want people to use the rupee but you offer very few goods and services. Just like Russia, they can't use the oversupply of rupees which means its tied up cash, which is bad for business
China and Japan might also dump dollars further accelerating DeDollarization
Palki getting overly excited and ahead of herself here..
Ir is the typical Indian attitude.
❤❤
❤❤❤❤
Americans export their inflation through dollar. Dollars can't be replaced now but dependency can be reduced
3:39 this isn’t true? If the process becomes more efficient, the rupee becomes stronger
the rupee is a volatile currency, its a risk for UAE to agree to this
Why Russia does not buy from us...we should learn to balance trade
Post Covid world 🥰🥰🥰
It is impossible when you are not a leading contributor to practically everything. Just because you have money to give away doesn't mean people will trust it. India is only giving gestures, but nothing will come of it if they are not helping countries more than their competitors.
you are correct. Palki should be educated by people like you.
😂 did USA help Srilanka, Bangladesh, Nepal, Mauritius, Afghanistan out of Crisis. atleast Vietnam, Philippines against China. It will not even help TAIWAN. USA just make deals for military outpost 😊and sell weapons. But they have funds to support terrorist Pakistan and to expand NATO😂.
INDIA is going balanced unlike China and Russia if not Dollar be dead overnight 😊
Do you know how many millions of vaccines India donated to African central American etc during covid....Google it how many billions of dollars India gave to countries suffering from economic crisis for eg - Srilanka (8 billion) #donation ✌️
Infact Russia can use Indian Rupee to buy goods from UAE
🙏🏻👌😊👍🏻👏
Hey Palki, can you please do some searching into this whole climate change thing?
Dollar domination world over would be diminshed if one countryin the world if exchange the home currency with the partner country for trading & turisim.currency problem will be resolved.
No one want to use rupees... It'll be useless after awhile.
India can buy western brands and sell it Russian and take her Rupee back. So is a closed circle. Because europ buy gas from India tripple more than northstream.
We need to go back to the gold standard. That solves the issue .
India is buying tons of oil but at a fairly low rate. I'd buy as much as I could while Russian are selling it low
Palki
So India needs to sell to Russia... In exchange for rupees Russia received
#4 of the Alphabet is the solution to all the chaos happening within India or outside India. I call it the single view of the citizen in UI/UX terms, Vision of AADHAAR has to go to the next level. We are making India a country of benefits, all together we are spending 10x more money than United Nations but still, we are poor. Read past, RUPEE was the symbol of trade and meaning of trade. In my point of view, don't print currency at all and the world will be aligned. And please bring barter system and not the blockchain and servers.
Give massive subsidies to Indian exporters to close the deficit
initiative is good but tracking and making it possible is tough, modi govt is well in economy so high expectation.
Everyone complains about the USA but the freedom that many people in the world enjoy would not exist without it.
problem is the 'freedom' comes at an extreme price for nations.
@@patrickgz Then why do they continue to receive military and financial foreign aid?
@@chivischivisv please check what 'aid' does usa provide to india and uae and why. india doesnt want it but biden admin continues to give anyway. uae is of course to 'safe guard' usa interest there, oil! over there, they call it kickbacks and not aid
The word "rupee" in sanskrit means "silver coin". Good try but the paper rupee can be trusted only it gets back to its silver or gold backing
Good bye gold standard for BRICS
- everyone knows it was just an attempt to get Indias gold for oil
Now ok but.....
Until rupee surpless for UAE and then move to Yuan.
why yuan, why not brics currency? any attempt to move to any country currency means moving away from one hegemony to another. the financial cost will be same, not to mention sanction, etc.
In max to max after 50 yrs - Either INR or RUBLE or YUAN will replace the dollar 💰 easily. But 100% chances goes to the chinese yuan
It's good to dream. Especially when one is drunk with adulterated vodka. BTW, where do you put the euro currency in this dream you are having?
And then UAE will have billions of rupees with which it can't buy anymore
Already group related
What if China and russia we want to trade with Rupees😊😊😊
Use Bitcoin / BTC or XRP
We 😘 rupees 🎉😂