Submitted by CoolestGuyOnSaturn t3_124qxgw in worldnews
Egypt needs another six ship loads of rice, which could weigh over 1.5 lakh tonnes, it has sought to make the payment in INR
Except all your examples involves buying USD which none of those countries even want so why would they care about that comparison? They don't care about the yank stock market either. These things only have value to people who want to trade with the US.
Egypt needs 3 Egyptian Pounds to buy 1 US Dollar, and less than that to buy 1 Indian Rupee. So going by your logic, its better for Egypt to buy Indian Rupees than USD. They get more bang for their buck in India, just like everyone else does, not to mention all the moral and political value that comes along with undermining the US.
Not if it takes 82 rupees to buy something that costs 1 US dollar
Yes, you are correct as far as I have read. I just want to add some things. The exchange rate development between USD and IND is not as important for Egypt as the exchange rate development between IND and EGP, if that is their more important trading partner. Also the exchange rate to USD is not the same as the development of prices of Indian export goods. Just because the INR is losing value in comparision to USD, does not mean that you necessarily get less goods for the same amount from India. The USD might even be useless to you, if you can not pay the things you want to buy with it. As the arcticle says they faced "tremendous difficulties" (whatever that means) to make that mentioned trade in USD. It might not be possible the change your EGP to USD, or to change your USD to INR, or to pay in USD, or to obtain enough USD at all. However it will surly be possible to pay an indian company with INR. Tbh I don't know much about either of these countries, but India might not need USD now or in the future. Even if India has to subsidize it currently, it may be worth it for them to get rid of the USD and stop accepting it at all. I would also not make the mistake to think that the past is always representive for the future. Decision like these will give the INR more stability. I would also try to exclude third party currencies from my trades. Nothing is more valuable than an accepted currency that you control.
India will keep taking USD, because trade with the US is over $100 Billion USD: we're talking, "India must disband its entire military to offset the loss" levels of money. And that's assuming the US doesn't pressure others to avoid the INR, which would tank its value from the uncertainty alone, at least for a while.
It makes far more sense for India to just subsidize Egypt by allowing it to use INR to buy goods cheaper than with USD, rather than not taking USD.
Yeah, that might be true. As said I don't know that much about them. I just meant potentially.
Again, you've missed the point where none of them want anything from the US lmao They aren't buying stuff from India in US dollars. Nobody cares how much a US dollar is, they don't want a US dollar or anything in US dollars.
You know how money works, right? Do I need to explain how shopping works and how things are bought?
I guess I do need some explanation of how shopping works, please tell me how something worth 1 USD would also cost 1 Indian Rupee.
You do realize that the price of things in Indian Rupees in India are affected by the value of the US dollar, right?
Even a simple google search would tell you its 241% more expensive in the US and you could have saved yourself the embarassment. But fine, here's an easy example your Yank brain should be able to understand.
An Egyptian buying a pair of jeans from the US would spend $46.45 USD or 3,818.48 Rupees which turns out to be 1435.31 Egyptian Pounds.
Buying that same pair of Jeans in India costs $27 USD or 2,219.48 Rupees which would be 834.31 Egyptian Pounds.
If you still don't get that India is cheaper then you're brain damaged or something. Prices are based on what the market is willing and able to support, not what the value of the USD is lmao. Go back to school and learn Economics 101 or something cause "supply and demand" and how the market works is all stuff that we covered in High School.
I get that the cost of living in India is cheaper, that's not what we're discussing. We're discussing that the value of Indian Rupees are more volatile than USD and you have a better chance of your Indian Rupees losing value than the USD.
If the value of the rupee:USD suddenly went from 82:1 to 2000:1, do you think the cost of the jeans in rupees would remain the same?
Do you think the value of the USD will always be stable when its no longer the reserve currency? Do you think India's Rupee will still be as unstable when the US is no longer the default currency?
I don't think these countries really care about whether it will always cheaper or not. They value ending the US's monopoly far more than they value cheap stuff. India has a billion people and far more economic potential than the US, whose population, economy and power is in a steep decline.
The American empire is over and all of this is just cope from people who can't handle it.
> I don't think these countries really care about whether it will always cheaper or not.
So you think India is buying Russian oil for some reason other than it being cheaper?
No they're literally just buying it because its cheaper lmao That's all that matters in the end. You were the one who was acting like there was something more happening than just buying cheaper stuff.
Nothing you've said changes the fact that the value of USD doesn't matter. All that matters is the value of other currencies vs the Rupee. I know yanks think they are the center of the world and everything is about them, but its not. If the US disappeared tomorrow and everyone there were vaporized in a nuclear war, the rest of the world would move on.
Haha, you must have missed the quote from your previous post where you said things being cheaper don't really matter because the hatred for the US outweighs cheaper prices. But now, just a few minutes later, cheaper prices are all that matter in the world. For having such a big brain, you're having a hard time keeping your argument straight.
>If the US disappeared tomorrow and everyone there were vaporized in a nuclear war, the rest of the world would move on.
Agreed the rest of the world would move on; however, at that point there would be very few people alive in the world and dollars or rupees would have very little importance, if any.
Good luck in the apocalypse my friend.
As an American, I am always shocked by how many people justify their own ugliness and hate by pointing to America. If nothing else, America's hypocrisy gives you a nice big red bow on your casual suggestion that 330 million people dying would be a nice thing in a currency thread. Funny how hate works isn't it?
Bad human behavior is bad human behavior. Use whatever enemy real or imagined necessary, but if you're so open with your own hate, you're no better. You're just another savage with a different flag, or maybe the same one I don't know.
Clamoring for nuclear annihilation of anyone doesn't make you better. It makes you worse. America won't fall, though. Entering into an era of war will only further serve American interests. Death by 1000 cuts was doable in times of peace, but in a time of war, good luck. Whether it's oil, gold, or otherwise, a desperate America will be happy to take it off someone's hands with not so much as an apology. Won't that be fun? The only way to beat her is from within.
If nuclear war only affects the US, then there's no reason for other countries to be concerned then. Just freely drop nuclear weapons to solve all your problems. No externalities whatsoever!!
Of course, nuclear war doesn't happen in a vacuum. I'm not implying its a realistic scenario. I'm just shocked at the hate and hypocrisy of people who hate America's hypocrisy. I also wonder what their leaders are like? If they are any more or less corrupt and greedy. What would it look like if they held the same power and reach? Everyone thinks the world would be so much better off, but be careful what you wish for. They may just find that the US isn't the source of all their problems and inequities.
I like it when you comment for you are so stupid yet so unaware of it
Lol
You could say that about India too, right?
Political instability in India also makes it unfavorable. I guess India is doing it to circumvent the West's sanctions?
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A major armed conflict with India is very unlikely.
India isn’t America, obviously, but it has a large and fairly sophisticated military. Nobody will risk a large war with India. Even pakistan uses terrorists for plausible deniability to prevent a conflict.
Plus India is developing a decent navy, which should stabilize the region a bit. But I expect at least 10 years before their currency calms down.
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That's about 3% of their government's budget.
It's a sweetener for US diplomacy, but it's not leverage
I lost whatever braincells I had left, when I read this uneducated comment.
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EyeLikeTheStonk t1_je0ozd7 wrote
Not a good idea... India's currency has consistently lost value to other currencies since India's independence in 1947.
In the past ten years, in 2013, 53 Rupees were required to buy 1 USD, in 2023, 82 Rupees are required to buy 1 USD.
In 1947, only 3.3 Rupees were required to purchase 1 USD... So in the last 76 years, the Rupee lost 96% of its value compared to the USD.
In the same period, since 1947, the Canadian Dollar (CAD) only lost 27% of its value and nobody is suggesting making the CAD into a reserve currency.
Any Indian investor whop spent his Rupees buying American dollars 10 years ago has gained a 54.7% profit. That's a solid 5.5% yearly gain. That is more than the average yearly 4.4% stock market return over the last 10 years. The Rupee cannot even beat the stock market...
What if India and China get involved in an armed conflict?
to know what would happen to the Rupee, just look at what happened to the UAH (Ukraine), in 2014 and in 2022 because of the 2 Russian invasions, over 10 years it lost 83% of its value... (source).
So if China and India get into an armed conflict, which they are likely to do, expect the value of the Rupee to be cut by half within days of the start of the conflict.
Making the Rupee into a reserve currency is dumb since it has always consistently lost value compared to other currencies because the goal of a reserve currency is to hold the one currency that does not lose value while all other currencies collapse.
Switching to the Rupee is a recipe for complete and utter economic disasters for those who move away from the USD.