New Delhi Investment：Economist ｜ ｜ India wants to build rupees into global currencies？

In recent years, India has experienced a long -term Indian manufacturing movement and finally achieved significant results. Its GDP has surpassed Britain and has become one of the top five economies in the world.However, Indian Prime Minister Modi has not stopped here, and he has a greater vision: to make India rupees into global reserve currencies.Facing the global trend of de -US dollar, Modi realized the opportunity and hoped to reduce dependence on the US dollar through the internationalization of rupees.So, can Modi achieve this grand goal?

How to build a globalurrency

How to build global currencies

India is the latest country to try. Painful Reforms Are RequiredNew Delhi Investment

India is the latest country to make this attempt.Need to withstand the pain of reform

Seventy Years Ago the Indian Rupee was often Found Found Way from Home. After India Gained Independence from Britain, The Currency Remaind in SHEIKHDOMS ACR OSS The Arabian Sea. Until as Late as 1970, Some Employed The Gulf Rupee, A Currency Isesued byIndia's Central Bank.

70 years ago, the Indian rupee often appeared away from his hometown.After India's independence from Britain, the chiefs across the Arabian Sea are still using this currency.Until the late 1970s, some countries were still using the Gulf rupees issued by the Central Bank of India.

TODAY The PICTURE IS RATHER DIFFERENT. The Rupee Accounts for Less than 2% of International-Currency Transactions, Even Thought the Indian Economy is the World ’s FIFT FIFT FIFT h-Largest.

But the situation is very different now.Although India is the fifth largest economy in the world, the proportion of rupees in international currency transactions is less than 2%.

Narendra Modi, India ’s Prime Minister, Would Like to See the Currency Span The Globe Once Again. Speaking at the 90th Anniversary of the Reserve of InIa On A Pril 1st, Mr Modi Told the Central Bank ’s Policymakers to Focus on Making the Rupee More Accessible.

Indian Prime Minister Narendra Modi hopes to see this currency in circulation worldwide again.At the celebration of the 90th anniversary of the establishment of the Indian Reserve Bank on April 1, Modi told the central bank's decision makers to focus on improving the usability of the rupee.

Historically, However, National Leaders Have Been A Lot More Likely to Express Enthusiasm for the Idea of ​​Making their Currency A Global One TONE ENACT The required to do so.

However, from a historical point of view, leaders of various countries are often more enthusiastic about expressing the idea of ​​making their currencies global currency, rather than implementing the reform required for this goal.

Although The American Dollar is the UNDISPUTED King of Currencies, there are many with a global role of their own. The sky position, the swisciac , And the Dollars of Australia, Canada, Hong Kong and Singapore are all exmples.

Although the US dollar is an indisputable king of currency, many currencies have played their own role worldwide.The US dollar, British pound, Swiss franc, and Australia, Canada, Hong Kong and Singapore are examples.

These Currencies are found in Foreign Reserves and Private Portfolios Worldwide, And Used for Both Trade and Financial Transactions. In theory, there is no Why the rupee should not join theillustriousground.

These currencies have appeared in global foreign exchange reserves and private investment portfolios, and are used for trade and financial transactions.Theoretically, there is no reason for the Rude to not join this outstanding ranks.

Having a widly use Currency Brings Sizeable Benefits. Demand from Overseas Investors Lowers FINACING COSTS for DORORCPANIES, Which Are No Longerledto Borrow in FOREIGN CURrenCies.

Having a wide range of currencies will bring huge benefits.The demand of overseas investors has reduced the financing costs of domestic companies, and these companies are no longer forced to borrow foreign currency.

Super Demand Also Reduces Exchange-Rate Risks for Exporters and Importers, Who Do Not Need to Convert Currencies so often space, and enables they DUCE The size of its foreign-exchange reserves.

This demand also reduces the exchange rate risk of exporters and importers, because they do not need to change currencies frequently during transactions, and enable the government to reduce the scale of foreign exchange reserves.

SOME of the Foundnes of An International Currency Are Being Laid in India. The country now has assets that foreigners want to build Store of value overseas.

India is laying some cornerstones for international currencies.Now, India has assets that foreigners want to buy, which makes rupees a potential overseas value storage method.

In September Jpmorgan Chase, a Bank, Annound that it would include indlenment bonds inn decision last month.In dollar terms over the pass year, havepiquedglobal interest.

In September, Morgan Chase Bank announced that Indian government bonds were included in its emerging market index.Data provider Bloomberg made the same decision last month.In the past year, Indian stocks have risen by 37%(pricing at the dollar), and its strong performance has aroused global attention.

The rupee is also increasingly a unit of account and a medium of exchange for foreignsers. Banks from 22 COUNTRIES HAVE PEEN SPEN SPEN SPEEN SPEN SPENMONOMINMINMINMITE ATEDACCOUNTS, without the usual exchange limits. in August India Made its first runment for il, to theAbu dhabi national il company.

The rupee is also increasingly becoming a foreign accounting unit and a medium of exchange.Banks from 22 countries have been approved to open a special rupee account, which is not restricted by the usual exchange.In August of this year, India used the rupee to pay oil to Abu Dhabi National Petroleum Corporation.

YET China Shows How Far India Has to go. Although Chinese Policymakers have been trying to make the yuan a glrent for more than a decade. TS for Less than 3% of the International Trades Made Via Swift, A Payments Network, Outside TheEuro Zone, Despite The Fact that China Accounts for 17% of Global GDP.

However, from India, India still has a long way to go.Although India has been working hard to make the renminbi a global currency for more than ten years, the proportion of RMB in international trade outside the euro zone is still less than 3%, and India's GDP has accounted for 17%of the world's.

Moreover, 80% of suic International Yuan Transactions OCCUR in Hong Kong. China's Relacted Capital Account, Which Prevents Folding Freely Across its border, is the main obStacle to siter use of its current.WAS, But is Still Far More ShelTred than that of the countries with a global current.

In addition, 80%of these international RMB transactions occurred in Hong Kong.India's capital account is relatively closed, and investment cannot be free of cross -border flow. This is the main obstacle of its currency.Although India's capital account is more open than before, it is still much more closed than any country with global currency.

(Red labels are difficult vocabulary)

Difficulty vocabulary:

Illustrious [ɪˈlʌstriəs] adj.

Compel [kˈm [pel] v. Forced; forced

pique [pik] n. Angry; anger; anger v. Make resentment

DENOMINATE [dɑninməˌneɪt] v. Settle with the specified currency unit; call ... as ...

Source: Daily Bilingual Economist

Disclaimer: Some of the articles are owned by the original graphic authority. If there is any infringement, please contact us to delete it.Bangalore Stock Exchange

USSTCPLUS

Science and education elite dreams

Long press and follow me for 3 seconds, and get related education and cultural information in time