Kanpur Stock：India is frustrated to the US dollar!The transaction cost is too high, and the oil country is unwilling to accept the rupee payment [Analysis of the current status of international currency]

India is frustrated to the US dollar!The transaction cost is too high, and the oil country is unwilling to accept the rupee payment [Analysis of the current status of international currency]

(Picture source: Photo.com)

This year, the US dollar has fallen due to increasing debt, multiple interest rate hikes, and frozen foreign exchange incidents. This has led many countries to see opportunities. India does not have the exception of the local currency.However, India still faces some challenges in the process of implementing rupees.

Recently, the Indian Ministry of Petroleum revealed to the Indian Parliament Committee that India's efforts to pay crude oil imports in India encountered a bottleneck, and their trading partners were still reluctant to accept the rupee.According to reports, in the 2022-2023 fiscal year, there was no oil imported by India for settlement.Global oil suppliers generally resisted the Rude's paymentKanpur Stock. The reason is that the transaction cost is high, and that the Rude is limited in global acceptance, which may bring relevant foreign exchange risks.

The US dollar has always been the main reserve currency in international trade, but this year's international pattern has changed greatly.On April 1, the Indian Ministry of Foreign Affairs stated that in addition to the existing currency settlement model, trade between India and Malaysia can now be settled in India rupees.In addition, Indian Reserve Bank decided to allow India rupees to settle international trade.

However, economic sources believe that the Indian government has only "confidence" and lacks some necessary conditions.Because there are very few Indian export products that are anchored by rupees, most countries are not optimistic about the prospects of holding a large number of rupees, and they may stop after accepting part of them.

——Digital still dominates

In terms of foreign exchange reserves around the world, although a major structural change has undergone a major structural change in the past 60 years, the US dollar still occupies a dominant position. As of the first quarter of 2021, the US dollar has dominated the global foreign exchange reserves, reaching 69912 69912$ 100 million, accounting for 56%.Followed by euro and yen, US $ 2415.7 billion and US $ 692.1 billion, respectively, accounting for 19%and 6%, respectively.

——The risk analysis of the depreciation of the dollar

Under the current currency system led by the US dollar, the depreciation of the US dollar is huge risk for India's foreign exchange reserves, input inflation and cross -border trade exchange rate fluctuations, which is not conducive to the stable development of India's economy. Accelerating the internationalization of RMB is a necessary measure to avoid the risk of depreciation of the US dollar.Essence

According to US economic data, the price index of personal consumption expenditure (PCE) in November increased by 0.1%month -on -month, the first decline since April 2020.A year -on -year increase of 2.6%, below 2.8%, and 2.9%below October.The Fed's core personal consumption expenditure price index increased year -on -year increase, and the 3.4%after the amendment in October slowed down to 3.2%, lower than the expected 3.3%; the month -on -month increase was 0.1%, which was less than 0.2%of the expected increase.Market analysts believe that these data have greatly increased the Federal Reserve's recent weight to the more loose monetary policy position.In addition, under the dual pressure of currency and fiscal policies, the market generally expects that the US economy is likely to fall down next year, and may even fall into economic recession.

Prospective Economist APP Information GroupIndore Investment

For more research and analysis of this industry, please refer to the "Report of the Innovation Trends and Enterprise Development Strategic Analysis of the Indian Financial Industry Innovation Trends and Enterprise Development"

At the same time, the Foresight Industry Research Institute also provides solutions such as industrial big data, industrial research reports, industrial planning, park planning, industrial investment, industrial maps, smart investment systems, industry status certification, IPO consultation/recruitment and research, IPO work, and other solutions and other solutions.EssenceIn any public information disclosure of the prospectus, the company's annual report and other public information disclosure, the content of this article is required to obtain the regular authorization of the forward -looking Industrial Research Institute.

More deep industry analysis is all in the [Prospect Economist APP], and you can also communicate and interact with 500+ economists/senior industry researchers.