India to pay for Iran oil in Rupee, save $22 billion, cut CAD

[janon]

Indian rupee can only spin your head. Seems like it is pegged with US dollar today. It can do that much I suppose?? Am I?

No, it is not. Indian rupee is India's own sovereign tender. Not pegged to any foreign currency.

 

[TopCat]

No, it is not. Indian rupee is India's own sovereign tender. Not pegged to any foreign currency.

How does it look like today???


XE.com - USD/INR Chart

 

[janon]

How does it look like today???


XE.com - USD/INR Chart

Better than yours. As I said before.

Calculator for Bangladeshi Taka (BDT) Currency Exchange Rate Conversion

Now since you have displayed your ignorance several times, like asserting that the rupee is pegged to the dollar and other such nonsense, don't you think its time you leave the thread, rather than going on making a fool of yourself? It's up to you of course.

 

[he-man]

Better than yours. As I said before.

Calculator for Bangladeshi Taka (BDT) Currency Exchange Rate Conversion

Now since you have displayed your ignorance several times, like asserting that the rupee is pegged to the dollar and other such nonsense, don't you think its time you leave the thread, rather than going on making a fool of yourself? It's up to you of course.

i think there should be an entrance test for this forum.............

 

[Maler]

Iran will be insane to accept rupees which is going down 2% every other day... the talk started when the rupee was strong and I dont think Iran will accept 22 billion dollar worth of trash rupees only because India needs it.

Oouchhh!!!!!!!! Some times its really frustrating 'n painful na..............

 

[Splurgenxs]

Iran will be insane to accept rupees which is going down 2% every other day... the talk started when the rupee was strong and I dont think Iran will accept 22 billion dollar worth of trash rupees only because India needs it.

Dont flaunt ur illiteracy and insanity here.
The fact of the matter Is Iran will be using the Rupee only in India and hence the economic term PPP takes precedence.
Since PPP of INR remains more or less stable , We buy and sell exclusively to each Other. Making Iran a very valuable trading partner for our goods.

 

[Shardul.....the lion]

Both India and Iran are facing difficult economic times and Barter trade agreement will help both the countries...

 

[he-man]

Both India and Iran are facing difficult economic times and Barter trade agreement will help both the countries...

just like old barbaric times

 

[Tshering22]

WE are not in a double deficit economy rather double surplus economy. And Taka is only for our domestic use and you are not allowed to take that out more than 500 taka.

This is the only way to arrest the falling Rupee. Plus it would encourage a better set of confidence building moves when Iranians buy more stuff from us. A Rupee-based trading with Iran will relieve some pressure from Rupee and bring it back to stability. Not just Iran but also if some other countries are willing.

Then you won't have the sudden dump of rupee into Indian market.

 

[Black Eagle 90]

HT Correspondent, Hindustan Times new delhi, August 30, 2013

The oil ministry hopes to shave off $22 billion (Rs 1,44,540 crore) from its import bill by paying for Iranian oil in rupees.

“The Prime Minister has told us to save $25 billion (Rs 1,64,250 crore) from the oil import bill. As of today, we have already put together a plan to save $22 billion,” petroleum minister Veerappa Moily said, adding that the savings would amount to more than 1% of India’s GDP.

Further, the ministries of petroleum, finance and external affairs have worked out a joint action plan to cut dollar-denominated oil imports and, instead, explore the possibility of paying other oil exporting nations either in rupees or in their local currencies.

“We are talking to Iraq and are in an advanced stage of talks with Iran on the matter,” a senior official said, identifying two of the countries.

This will provide a huge shot in the arm for India’s economy, which is staring at a potentially crippling oil import bill of more than $200 billion this year following the 20% depreciation in the rupee against the dollar and a possible spike in global crude prices if the US attacks Syria. India imported oil worth $170 billion last year.

The Indian crude basket (the various grades of crude that India imports from different countries) has already jumped 10% to more than $114 (Rs 7,490) per barrel. This could rise further to $120-130 (Rs7,884-8,541) per barrel in if the US does attack Syria. There is speculation that this attack may take place as early as next week.

Without the deal with Iran, such a scenario could debilitate India’s balance of payments situation and result in the already bloated current account deficit going completely out of control. Finance minister P Chidambaram has said he is confident of capping CAD at $70 billion or 4.8% of GDP.

During the last fiscal, India had imported 13.1 million tonnes of oil from Iran, down from 18.11 million tonnes of 2011-12.


Source: India to pay for Iran oil in Rupee, save $22 billion, cut CAD - Hindustan Times

Why not Oil and Gas pipeline from IRAN to Pakistan and then INDIA.....

 

[he-man]

Why not Oil and Gas pipeline from IRAN to Pakistan and then INDIA.....

actually thats the best option

but american pressure prevents that

 

[anant_s]

Sensible and long over due move. US didnot provide any cover for loss to economy and given the condition of relations with India and impending deals, i don't think New Delhi will have any more than US expressing its disappointment as and when the move comes. I hope India sets the ball rolling and as trade picks up perhaps Iran can import food grains etc from India. this is going to be a win-win situation for both nations.

Both India and Iran are facing difficult economic times and Barter trade agreement will help both the countries...

Indeed. India never had sour relations with Iran and why should we be party to US's policy that suits them no tus.

 

[Gautam]

Iran will be insane to accept rupees which is going down 2% every other day... the talk started when the rupee was strong and I dont think Iran will accept 22 billion dollar worth of trash rupees only because India needs it.

I think Iran should abandon everyone and trade only with Dhaka with Taka. What say Kaka??