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In a significant diplomatic move, Prime Minister Narendra Modi met with Maldives President Mohamed Muizzu at <keyword id="20751669" type="General" weightage="20" keywordseo="Hyderabad-House" source="keywords" meta.keywordsubtype="org" meta.entityname="Hyderabad House" meta.hostid="261" meta.entityid="Hyderabad House">Hyderabad House</keyword> in Delhi on Monday. This visit is widely seen as an effort to reset ties between the two nations after a year of tense relations. <keyword id="20101322" type="General" weightage="20" keywordseo="President-Muizzu" source="keywords">President Muizzu</keyword>, who arrived in India on Sunday for a five-day visit, received a red carpet welcome. During a joint press briefing, President Muizzu expressed heartfelt gratitude to India, thanking President Droupadi Murmu, <keyword id="19899320" type="General" weightage="20" keywordseo="PM-Modi" source="keywords">PM Modi</keyword> and the people of India for their warm reception. He emphasised the Maldives' deep-rooted ties with India, noting that tourism — especially Indian visitors—remains a crucial pillar of the Maldivian economy. “India is our largest source market for tourists, and we hope to welcome even more Indian visitors in the future,” Muizzu remarked. Key areas of cooperation discussed included economic ties and maritime security, critical given the Maldives' position in the Indian Ocean. Following their talks, India granted the financially struggling Maldives a rollover of USD 100 million in Treasury bills, in addition to formalising a <keyword id="23458604" type="General" weightage="20" keywordseo="currency-swap-agreement" source="keywords">currency swap agreement</keyword> and a ₹3,000 crore currency swap. Prime Minister Modi characterised the "development partnership" as a key component of India-Maldives relations, asserting that India has consistently prioritised the needs of the Maldivian people. "Our development partnership is vital to our relationship with the Maldives, and we have always placed importance on the priorities of its people. This year, SBI rolled over USD 100 million in Treasury Bills, and a USD 400 million currency swap agreement was signed based on the Maldives' requirements," he explained. <div type="Article" hostid="261" msid="106837748" title="Withdraw troops by mid-March, Maldives tells India" mstype="2" mssubtype="0"></div>In September, India announced that the <keyword id="19934368" type="General" weightage="20" keywordseo="State-Bank-of-India" source="keywords" meta.keywordsubtype="org" meta.entityname="State Bank of India" meta.hostid="261" meta.entityid="State Bank of India">State Bank of India</keyword> would purchase Maldivian government bonds worth USD 50 million, following a similar USD 50 million transaction in May 2024. Additionally, Prime Minister Modi and President Muizzu witnessed the first <keyword id="20563654" type="General" weightage="20" keywordseo="RuPay-card" source="keywords">RuPay card</keyword> payment transaction launched in the Maldives and virtually inaugurated the runway at Hanimaadhoo International Airport. Modi stated that India and the Maldives would soon be connected through UPI. "Recently, we launched the RuPay card in the Maldives, and in the future, we will link both countries via UPI," he said during a joint press briefing. Muizzu also expressed his desire to conclude a <keyword id="19945642" type="General" weightage="20" keywordseo="Free-Trade-Agreement" source="keywords">Free Trade Agreement</keyword> with India, a step he believes will open the door to greater Indian investment in the Maldives. Modi emphasised India's commitment to supporting the Maldives through various initiatives, including supplying essential commodities and Covid vaccines, inaugurating airports, and constructing social housing. He noted that a new drinking water project is now operational on 28 islands, providing clean water to over 30,000 residents. The leaders also discussed the opening of consulates in Addu and Bengaluru. Tensions between India and the Maldives escalated following Muizzu's election last year, which saw a shift towards a pro-China stance and the promise to withdraw Indian troops stationed in the archipelago. His visit to China before India in January had raised eyebrows in New Delhi, as it was perceived as a slight. However, since attending Modi's swearing-in ceremony for a third term in June, Muizzu has moderated his anti-Indian rhetoric, signalling a thaw in relations. External Affairs Minister S Jaishankar has stated that the discussions provided "a new impetus" to the relationship. This meeting likely marks a positive turn in Indo-Maldivian relations, setting the stage for further cooperation between the two South Asian neighbours. (With inputs from agencies) <div type="Article" hostid="261" msid="112094153" title="Maldives President Muizzu thanks India for economic support, affirms hope of signing FTA" mstype="2" mssubtype="0"></div>

Maldives President Muizzu met with PM Modi in Delhi today. Here’s how it went!

<keyword id="19895063" type="General" weightage="20" keywordseo="India" source="keywords">India</keyword>'s <keyword id="19998537" type="General" weightage="20" keywordseo="foreign-exchange-reserves" source="keywords">foreign exchange reserves</keyword> have surged to a record high, reaching a new peak of $ 666.85 billion, according to data from the Reserve Bank of India (<keyword id="19899808" type="General" weightage="20" keywordseo="RBI" source="keywords">RBI</keyword>). The data highlights an increase of $9.69 billion in just one week, as of 12 July, surpassing the previous high of $657.2 billion. The reserves have been rising intermittently for some time now. The RBI data reveals that India's <keyword id="20972687" type="General" weightage="20" keywordseo="foreign-currency-assets" source="keywords">foreign currency assets</keyword> (FCA), the largest component of <keyword id="20344433" type="General" weightage="20" keywordseo="forex-reserves" source="keywords">forex reserves</keyword>, rose by $8.3 billion to $585.47 billion. Additionally, <keyword id="19895579" type="General" weightage="20" keywordseo="gold" source="keywords">gold</keyword> reserves increased by $1.2 billion, reaching $58.66 billion. According to a recent RBI report, India's foreign exchange reserves are now sufficient to cover over 11 months of projected imports. In the calendar year 2023, the RBI added approximately $58 billion to its foreign exchange reserves. In contrast, in 2022, India's forex reserves declined by a cumulative $71 billion. Forex reserves, or foreign exchange reserves (FX reserves), are assets held by a nation's central bank or monetary authority, typically in reserve currencies such as the <keyword id="19949640" type="General" weightage="20" keywordseo="us-dollar" source="keywords">US dollar</keyword>, and to a lesser extent, the euro, Japanese yen, and pound sterling. The country's foreign exchange reserves last reached an all-time high in October 2021. Much of the subsequent decline can be attributed to the increased cost of imported goods in 2022. Additionally, the relative fall in forex reserves has been linked to the RBI's market interventions, to manage the uneven depreciation of the rupee against a surging US dollar. The RBI frequently intervenes in the market through liquidity management, including the sale of dollars, to prevent steep depreciation of the rupee. The RBI closely monitors the foreign exchange markets and intervenes only to maintain orderly market conditions by containing excessive volatility in the exchange rate, without reference to any pre-determined target level or band.

India's forex reserves hit record $666.85 billion, driven by surging gold and foreign currency assets

The Reserve Bank of <keyword id="19895063" type="General" weightage="20" keywordseo="India" source="keywords">India</keyword> (<keyword id="19899808" type="General" weightage="20" keywordseo="RBI" source="keywords">RBI</keyword>) on Thursday allowed the opening of rupee accounts outside India as part of its strategic action plan to internationalise the domestic <keyword id="20256153" type="General" weightage="20" keywordseo="currency" source="keywords">currency</keyword>. With emphasis on continuous synchronisation of the <keyword id="19940710" type="General" weightage="20" keywordseo="FEMA" source="keywords">FEMA</keyword> operating framework with the evolving macroeconomic environment, rationalisation of various guidelines will be of primary focus, the central bank said in its annual report. The RBI said it has finalised a strategic action plan for 2024-25 and envisaged liberalisation of external commercial borrowing (ECB) framework and 'Go-live' for phase I of software platform for ECBs and trade credits reporting and approval (SPECTRA) project. The RBI will permit opening of rupee (INR) accounts outside India by persons resident outside India (PROIs) as part of the 2024-25 agenda for internationalisation of the domestic currency. "INR lending by Indian banks to PROIs and enabling foreign direct investment (FDI) and portfolio investment through special accounts [special nonresident rupee (SNRR) and special rupee vostro account (SRVA)," the report said. Rationalisation of the Liberalised Remittance Scheme (LRS) and review of the IFSC regulations under FEMA also are part of the agenda for the current financial year. The RBI report further said rationalisation of regulations towards promoting the internationalisation of the INR was undertaken to enable the settlement of bilateral trade in local currencies. Going forward, it said the liquidity operations would continue to be in sync with the stance of the monetary policy, while the foreign exchange operations would be guided by the objective of ensuring orderly movements in the exchange rate of the rupee. SEE ALSO:<a href="https://www.businessinsider.in/india/news/lok-sabha-exit-poll-2024-what-are-they-when-will-they-be-announced-and-all-you-need-to-know/articleshow/110565608.cms" target="_blank"></a> <a href="https://www.businessinsider.in/india/news/lok-sabha-exit-poll-2024-what-are-they-when-will-they-be-announced-and-all-you-need-to-know/articleshow/110565608.cms" target="_blank">Lok Sabha Exit Poll 2024 – what are they, when will they be announced and all you need to know</a><a href="https://www.businessinsider.in/tech/apps/news/truecaller-can-now-detect-if-the-caller-is-using-ai-how-to-use-it-to-prevent-ai-call-scams/articleshow/110556100.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/apps/news/truecaller-can-now-detect-if-the-caller-is-using-ai-how-to-use-it-to-prevent-ai-call-scams/articleshow/110556100.cms" target="_blank">Truecaller can now detect if the caller is using AI – How to use it to prevent AI call scams</a><a href="https://www.businessinsider.in/sports/webstories/indias-t20-world-cup-team-matches-and-everything-you-need-to-know/slidelist/110551798.cms" target="_blank"></a> <a href="https://www.businessinsider.in/sports/webstories/indias-t20-world-cup-team-matches-and-everything-you-need-to-know/slidelist/110551798.cms" target="_blank">India’s T20 World Cup team, matches and everything you need to know</a>

RBI to allow opening of rupee account outside India

The <keyword id="19949639" type="General" weightage="20" keywordseo="Rupee" source="keywords">rupee</keyword> opened on a flat note against the <keyword id="19949640" type="General" weightage="20" keywordseo="US-dollar" source="keywords">US dollar</keyword> in early trade on Tuesday, weighed down by a muted trend in domestic equities and the strength of the <keyword id="20563045" type="General" weightage="20" keywordseo="American-currency" source="keywords">American currency</keyword> in overseas markets. <keyword id="20024982" type="General" weightage="20" keywordseo="Forex-traders" source="keywords">Forex traders</keyword> said the US dollar strengthened due to increased demand from oil importers and stronger-than-expected economic data from the US. Moreover, rising crude oil prices also weighed on the local unit. At the interbank foreign exchange market, the local unit moved in a narrow range. It opened at 83.49 against the American currency and touched 83.50 in initial trade. On Monday, the rupee settled for the day lower by 10 paise at 83.50 against the US dollar. The <keyword id="19899810" type="General" weightage="20" keywordseo="Reserve-Bank-of-India" source="keywords">Reserve Bank of India</keyword>'s positive economic outlook, with solid growth and unchanged inflation projections, suggests that there is less room for any early cuts amid prospects of rising inflation. This is likely to benefit the rupee from a favourable interest rate differential, said CR Forex Advisors MD Amit Pabari. Further, Foreign Institutional Investors (FII) have resumed their buying. FIIs were net buyers in the capital markets on Monday, as they purchased shares worth Rs 2,572.38 crore, according to exchange data. Moreover, anticipated inflows such as Reliance Infrastructure raising USD 350 million, SpiceJet planning to raise USD 250 million, and Clix Capital aiming to raise USD 600 million are likely to benefit the rupee, Pabari said. Given these factors, the rupee is expected to swing within a range of 82.90 to 83.70, he added. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was at 105.12, lower by 0.02 per cent. Brent crude futures, the global oil benchmark, fell 0.20 per cent to USD 81.47 per barrel. On the domestic equity market, the 30-share BSE Sensex was trading 155.45 points, or 0.20 per cent lower at 76,334.63 points. The broader NSE Nifty was down 33.25 points, or 0.14 per cent, to 23,225.95 points. SEE ALSO:<a href="https://www.businessinsider.in/tech/news/ios-18-announced-with-apple-intelligence-improved-privacy-controls-customisable-home-screen-and-more/articleshow/110883233.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/news/ios-18-announced-with-apple-intelligence-improved-privacy-controls-customisable-home-screen-and-more/articleshow/110883233.cms" target="_blank">iOS 18 announced with Apple Intelligence, improved privacy controls, customisable home screen and more</a><a href="https://www.businessinsider.in/tech/news/apple-vision-pro-to-be-available-in-nine-new-countries-but-india-is-not-one-of-them/articleshow/110883439.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/news/apple-vision-pro-to-be-available-in-nine-new-countries-but-india-is-not-one-of-them/articleshow/110883439.cms" target="_blank">Apple Vision Pro to be available in nine new countries, but India is not one of them</a><a href="https://www.businessinsider.in/stock-market/webstories/ixigo-ipo-now-open-price-band-to-risk-factors-all-you-need-to-know/slidelist/110867238.cms" target="_blank"></a> <a href="https://www.businessinsider.in/stock-market/webstories/ixigo-ipo-now-open-price-band-to-risk-factors-all-you-need-to-know/slidelist/110867238.cms" target="_blank">Ixigo IPO now open – Price band to risk factors, all you need to know</a>

Rupee opens flat against US dollar in early trade

The <keyword id="19949639" type="General" weightage="20" keywordseo="rupee" source="keywords">rupee</keyword> turned flat at 83.73 against the <keyword id="19899478" type="General" weightage="20" keywordseo="US" source="keywords">US</keyword> <keyword id="20256153" type="General" weightage="20" keywordseo="currency" source="keywords">currency</keyword> on Friday amid weak equity markets and an upward movement in crude oil prices overseas. According to <keyword id="20024982" type="General" weightage="20" keywordseo="forex-traders" source="keywords">forex traders</keyword>, the Indian currency found support due to softening <keyword id="19904292" type="General" weightage="20" keywordseo="dollar" source="keywords">dollar</keyword> against major rivals following the US Federal Reserve's decision to maintain the status quo on interest rates and some inflow of foreign capital into Indian equities. At the interbank currency exchange, the domestic currency opened at 83.74 and inched up to trade at 83.73 against the dollar, the previous day's closing level. On Thursday, the rupee declined 5 paise to settle at 83.73 against the US dollar. Anand James, Chief Market Strategist, Geojit Financial Services, said the rupee's weakness was capped by "a likely intervention from the Reserve Bank of India, which sold dollars through state-run banks". "The next key US economic release is the July jobs report, expected on Friday," he added. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.07 per cent to 104.13. Brent crude -- the global oil benchmark -- rose by 0.79 per cent to USD 80.15 per barrel in futures trade. In the domestic equity market, the 30-share BSE Sensex plunged 614.96 points or 0.75 per cent to 81,252.59 in morning trade, while the broader Nifty declined 194.80 points or 0.78 per cent to 24,816.10. Foreign institutional investors were net buyers in the capital markets on Thursday and bought shares worth Rs 2,089.28 crore, according to exchange data. A monthly survey released on Thursday showed India's manufacturing sector growth eased slightly to 58.1 in July from 58.3 in June on softer increases in new orders and output, while cost pressures and demand strength led to the steepest increase in selling prices since October 2013. The government's GST collections in July rose 10.3 per cent to over Rs 1.82 lakh crore, driven by domestic transactions in goods and services, according to official data released on Thursday. SEE ALSO:<a href="https://www.businessinsider.in/stock-market/webstories/ola-electric-ipo-price-band-to-risk-factors-all-you-need-to-know/slidelist/112185870.cms" target="_blank"></a> <a href="https://www.businessinsider.in/stock-market/webstories/ola-electric-ipo-price-band-to-risk-factors-all-you-need-to-know/slidelist/112185870.cms" target="_blank">Ola Electric IPO – Price band to risk factors, all you need to know</a><a href="https://www.businessinsider.in/tech/mobile/news/nothing-phone-2a-plus-with-dimensity-7350-pro-chipset-launched-in-india-starting-at-29999/articleshow/112164963.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/mobile/news/nothing-phone-2a-plus-with-dimensity-7350-pro-chipset-launched-in-india-starting-at-29999/articleshow/112164963.cms" target="_blank">Nothing Phone (2a) Plus with Dimensity 7350 Pro chipset launched in India starting at ₹29,999</a><a href="https://www.businessinsider.in/tech/mobile/news/indian-smartphone-shipments-decline-by-2-in-q2-2024-xiaomi-retakes-the-throne/articleshow/112162312.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/mobile/news/indian-smartphone-shipments-decline-by-2-in-q2-2024-xiaomi-retakes-the-throne/articleshow/112162312.cms" target="_blank">Indian smartphone shipments decline by 2% in Q2 2024, Xiaomi retakes the throne</a>

Rupee turns flat at 83.73 against US dollar in early trade

The <keyword id="19949639" type="General" weightage="20" keywordseo="rupee" source="keywords">rupee</keyword> recovered from its all-time low level and appreciated by 5 paise to 83.65 against the US <keyword id="19904292" type="General" weightage="20" keywordseo="dollar" source="keywords">dollar</keyword> in early trade on Monday, as the American <keyword id="20256153" type="General" weightage="20" keywordseo="currency" source="keywords">currency</keyword> retreated from its elevated level. <keyword id="19950258" type="General" weightage="20" keywordseo="forex" source="keywords">Forex</keyword> traders said foreign fund inflows and possible intervention by the Reserve Bank of India (<keyword id="19899808" type="General" weightage="20" keywordseo="RBI" source="keywords">RBI</keyword>) supported the rupee at lower levels and restricted the downfall. At the interbank foreign exchange market, the local unit opened at 83.66, and touched an early high of 83.65, registering a gain of 5 paise from its previous close. On Friday, the rupee depreciated 7 paise to settle at its all-time low of 83.70 against the US dollar. "A weakening dollar -- prompted by shifts in the macroeconomic landscape and emerging cracks in US economic data -- caused the dollar index to dip to 104. This scenario saw emerging market currencies rising against the dollar," CR Forex Advisors MD Amit Pabari said. However, despite these rupee-supporting factors, the Indian currency hasn't appreciated significantly, Pabari added. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was at 104.29, lower by 0.10 per cent. Brent crude futures, the global oil benchmark, rose 0.69 per cent to USD 83.20 per barrel. On the macroeconomic front, India's forex reserves jumped by USD 9.699 billion to an all-time high of USD 666.854 billion for the week ended July 12, the RBI said on Friday. In the previous reporting week, the kitty had increased by USD 5.158 billion to USD 657.155 billion, surpassing the previous high of USD 655.817 billion for the week ended June 7. "This increase (in forex reserves) suggests that the RBI is actively preventing the Rupee from strengthening, even in the face of significant inflows into the equity and debt markets," Pabari said. In the domestic equity market, the 30-share BSE Sensex was trading 264.92 points, or 0.33 per cent lower at 80,339.73 points. The broader NSE Nifty was down 88.10 points, or 0.36 per cent, to 24,442.80 points. Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Friday as they purchased shares worth Rs 1,506.12 crore, according to exchange data. SEE ALSO:<a href="https://www.businessinsider.in/tech/mobile/news/google-pixel-9-pro-fold-to-launch-in-india-on-august-14-alongside-the-pixel-9-series/articleshow/111855704.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/mobile/news/google-pixel-9-pro-fold-to-launch-in-india-on-august-14-alongside-the-pixel-9-series/articleshow/111855704.cms" target="_blank">Google Pixel 9 Pro Fold to launch in India on August 14 alongside the Pixel 9 series</a><a href="https://www.businessinsider.in/tech/mobile/webstories/oneplus-nord-4-vs-realme-gt-6t-which-mid-range-phone-should-you-buy-under-35000/slidelist/111803604.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/mobile/webstories/oneplus-nord-4-vs-realme-gt-6t-which-mid-range-phone-should-you-buy-under-35000/slidelist/111803604.cms" target="_blank">OnePlus Nord 4 vs Realme GT 6T – which mid-range phone should you buy under ₹35,000?</a><a href="https://www.businessinsider.in/business/telecom/news/reliance-jio-and-airtel-added-3-45-million-subscribers-in-may-2024-while-vi-lost-nearly-a-million/articleshow/111800758.cms" target="_blank"></a> <a href="https://www.businessinsider.in/business/telecom/news/reliance-jio-and-airtel-added-3-45-million-subscribers-in-may-2024-while-vi-lost-nearly-a-million/articleshow/111800758.cms" target="_blank">Reliance Jio and Airtel added 3.45 million subscribers in May 2024, while Vi lost nearly a million</a>

Rupee recovers 5 paise from all-time low to 83.65 against US dollar in early trade

Mumbai, <keyword id="19969771" type="General" weightage="20" keywordseo="crypto" source="keywords">Crypto</keyword> currencies cannot be referred to as "currencies" as they have no underlying value, a central bank official said. The <keyword id="19899810" type="General" weightage="20" keywordseo="reserve-bank-of-india" source="keywords">Reserve Bank of India</keyword> (<keyword id="19899808" type="General" weightage="20" keywordseo="rbi" source="keywords">RBI</keyword>) has been critical of new-age currencies like bitcoins, saying they pose systemic risk to the financial systems. "Crypto currencies cannot be called currencies as they don't have any underlying value," P <keyword id="19944928" type="General" weightage="20" keywordseo="vasudevan" source="keywords">Vasudevan</keyword>, an executive director at the RBI, said during a panel discussion organised by IIM-Kozhikode here. Ultimately it is a call that the government has to take on how to tackle crypto currencies, the official said. Currently, bitcoins have no legal backing in India and investors have to pay a tax on the income earned by trading in them. In the backdrop of the action against <keyword id="19907220" type="General" weightage="20" keywordseo="paytm-payments-bank" source="keywords">Paytm Payments Bank</keyword> and curbs imposed on some international card providers, Vasudevan said self-regulation can protect the fintech sector better. He also said that mechanisms could be looked at to highlight bad behaviour.

Crypto currencies have no underlying value, says RBI official

Mumbai, The <keyword id="19899810" type="General" weightage="20" keywordseo="reserve-bank-of-india" source="keywords">Reserve Bank of India</keyword> and Bank <keyword id="19909773" type="General" weightage="20" keywordseo="indonesia" source="keywords">Indonesia</keyword> (BI) on Thursday signed a Memorandum of Understanding to promote use of local currencies for bilateral transactions. The MoU was signed here for establishing a framework to promote the use of local currencies viz., the <keyword id="20045514" type="General" weightage="20" keywordseo="indian-rupee" source="keywords">Indian Rupee</keyword> (INR) and the Indonesian Rupiah (IDR) for cross-border transactions, <keyword id="19899808" type="General" weightage="20" keywordseo="rbi" source="keywords">RBI</keyword> said in a statement. This framework would enable exporters and importers to invoice and pay in their respective domestic currencies, which in turn would enable the development of an INR-IDR foreign exchange market. "Use of local currencies would optimise costs and settlement time for transactions," RBI said. The MoU was signed by RBI Governor <keyword id="19913110" type="General" weightage="20" keywordseo="shaktikanta-das" source="keywords">Shaktikanta Das</keyword> and Bank Indonesia Governor <keyword id="20862647" type="General" weightage="20" keywordseo="perry-warjiyo" source="keywords">Perry Warjiyo</keyword>. "The MoU on establishing a framework for cooperation in the area of cross-border transactions in local currencies between <keyword id="19895063" type="General" weightage="20" keywordseo="india" source="keywords">India</keyword> and Indonesia, aims to promote the use of INR and IDR bilaterally," RBI said. The central bank further said the collaboration marks a key milestone in strengthening bilateral cooperation between RBI and BI. Use of local currencies in bilateral transactions will eventually contribute to promoting trade between India and Indonesia as well as deepen financial integration and strengthen the long historical, cultural and economic relations between India and Indonesia, it added.

RBI, Bank Indonesia sign pact to promote use of local currencies for bilateral trade

<ul class="summary-list"><li>De-dollarization is nothing but a myth — and it could backfire on countries like Russia and China.</li><li>That's according to Jeffrey Christian, a commodities expert who thinks dollar dominance isn't going away anytime soon.</li></ul>De-dollarization is probably a fad — and countries trying to stage a <a target="_blank" class="" href="https://www.businessinsider.com/us-dollar-war-global-fight-america-economy-dominance-reserve-currency-2023-7">global shift away from the dollar</a> may soon find that the movement will backfire.That's according to Jeffrey Christian, a longtime commodities analyst and the founder of CPM Group, who thinks that the <a target="_blank" class="" href="https://www.businessinsider.com/dedollarization-russia-actively-working-brics-local-currencies-platform-us-dollar-2024-6">de-dollarization push</a> in countries like Russia, China, and India could wind up backfiring and hurting the economies of those nations.Despite the ongoing movement, dollar dominance isn't probably going away, given how pervasive the greenback is in financial markets, he told Business Insider in an interview."I would think that de-dollarization is a dream some of us have," Christian said. "It's the idea of moving to this multi-international currency regime. It's a great idea, but the logistics of it happening are extremely daunting because all of the governments and countries would have to change the way they deal with currencies."<h2 id="267ed7d5-8da7-4661-88b2-ba954931f9c6">Nothing but a buzzword</h2>Christian is among a group of <a target="_blank" class="" href="https://markets.businessinsider.com/news/currencies/de-dollarization-dollar-war-currency-usd-dominance-china-yuan-economy-2024-5">de-dollarization skeptics</a> on Wall Street, who have brushed aside the trend as nothing more than a buzzword. De-dollarization is a "<a target="_blank" class="" href="https://markets.businessinsider.com/news/currencies/dedollarization-dollar-dominance-currency-war-trade-usd-reserves-explained-2024-5">myth</a>," "nonsensical," and a "bad joke," Christian told clients in a presentation earlier this year, adding that he didn't take fears about the dollar being displaced by another currency too seriously.That's partly because countries that are "adamant" about not using the dollar face a series of economic consequences, he told BI, pointing to three consequences in particular:<h3 id="ca391d02-a220-4f09-9a1d-b2ec50b542f0">1. Payment Issues</h3>First, de-dollarizing nations run a higher risk of payment issues, Christian said. He pointed to India, which insisted on <a target="_blank" href="https://www.businessinsider.com/dedollarization-russia-fraught-india-rupee-oil-trade-warning-us-dollar-2023-11#:~:text=Russia's%20oil%20trade%20with%20India,rate%20on%20the%20open%20market.">purchasing Russian oil in rupees and dirhams</a> — the UAE's currency — last year. Traders said that caused at least <a target="_blank" href="https://markets.businessinsider.com/news/commodities/russia-oil-india-ships-moscow-us-sanctions-ukraine-war-revenue-2024-1">seven India-bound oil ships to turn back to Russia</a>, Reuters originally reported.Payment squabbles stem from the fact that other currencies are not nearly as liquid as the dollar, as the greenback is so widely used in global markets and held among central banks.The dollar was used in 88% of all daily currency transactions as of April 2022, according to the <a target="_blank" class="" href="https://www.bis.org/statistics/rpfx22.htm">Bank of International Settlements</a>, and it accounted for 54% of all foreign exchange reserves, <a target="_blank" class="" href="https://data.imf.org/?sk=E6A5F467-C14B-4AA8-9F6D-5A09EC4E62A4">International Monetary Fund</a> data shows.Other currencies, like China's yuan, are bound by <a target="_blank" class="" href="https://www.businessinsider.com/dedollarization-china-yuan-cny-trade-usd-sanctions-protection-reserve-currency-2024-5">strict capital controls</a>, which also make them less liquid and, therefore, less attractive than the dollar, Christian said.It's also difficult to rapidly increase the liquidity of a currency without sparking high inflation, he noted."There are a lot of people who are hesitant to trade and hold reserves and wealth and bank accounts in the yuan because it's not a fully free-moving currency. So there are limits to it," he added.<h3 id="0d28cfe1-0ae4-4e05-8624-6442c3c3c16d">2. Limited trade</h3>Second, countries that try to phase out the dollar could be stifling their imports and exports. Again, that's because the dollar is the world's most widely traded currency — and not using that currency could limit a nation's scope of trading partners, which also impacts economic growth, Christian said.<a target="_blank" class="" href="https://www.businessinsider.com/russia-economy-collapse-recession-moscow-ukraine-war-us-dollar-energy-2024-7#:~:text=According%20to%20UC%20Berkeley%20economist,steady%20flow%20of%20US%20dollars.">Russia is one such example</a>. The nation denounced the dollar after it was slapped with Western sanctions in 2022. But forgoing the greenback is only isolating the nation more from international markets, one UC-Berkeley economist told BI, which could be weakening its economy even further.<h3 id="cfcee6a6-0941-44ce-96bf-916adfd6402a">3. Lost value</h3>Third, central banks risk making a "bad investment" by holding other currencies, since the dollar is a superior store of value, Christian said. According to the <a target="_blank" class="" href="https://markets.businessinsider.com/index/us-dollar-index">US dollar index</a>, which weights the greenback against a basket of foreign currencies, the greenback has appreciated around 40% since its trough in 2011. Meanwhile, currencies like the <a target="_blank" class="" href="https://markets.businessinsider.com/currencies/cny-usd">yuan have depreciated against the dollar</a> over the past decade."The dollar has been very strong for the last 20 years. And so, you are making bad investments," Christian said of central banks opting to shed their dollar reserves.Christian also doesn't see "too many" countries in the world de-dollarizing on a wide scale, barring exceptions like Russia, where geopolitical tensions with the US have bled into economic policies.Since the dollar is so widely used in financial markets, he estimates it would take decades for the dollar to be displaced if it ever does happen. That's similar to the view held by other currency experts, who say the <a target="_blank" class="" href="https://markets.businessinsider.com/news/currencies/dedollarization-dollar-dominance-currency-war-greenback-china-yuan-economy-2023-5">dollar's incumbency will take a long time to topple</a> due to its safe-haven reputation."You have these massive impediments to moving toward a less dollar-dependent international currency regime. It's not impossible, but it's either going to take decades to execute or it's going to come at the end of a very enormous global economic and financial collapse that I just don't see happening," Christian said.

De-dollarization is a fad that will backfire on countries trying to move away from the greenback, currency expert says

<ul class="summary-list"><li>Central banks will begin to diverge in their use of technology in 2024, the Atlantic Council said.</li><li>The US risks falling behind the EU, India, and China in the digital currency race.</li></ul>The US dollar has long been the <a href="https://www.businessinsider.com/us-dollar-war-global-fight-america-economy-dominance-reserve-currency-2023-7">dominant currency of the world</a>, but that doesn't guarantee the same will hold true as money turns increasingly digital. To Atlantic Council researchers Josh Lipsky and Ananya Kumar, the Federal Reserve is already falling behind in the technology race.Unlike the US, other world powers including China, India, Germany, Italy, and France have moved beyond the theoretical stage for central bank digital currencies (CBDC)."A lot of central banks are investing heavily in innovation, some of the largest central banks in the world, but the US position has been much more cautious on this," Lipsky told Business Insider in an interview. "But there is a risk here of falling behind, that would mean there's less US input in standard setting."Lipsky, who is the senior director of the Atlantic Council's GeoEconomics Center, said central banks around the globe are working to "future-proof" their currencies as blockchain technology, artificial intelligence, and quantum computing become more relevant — all of which, for better or worse, are poised to impact how people use money on a daily basis.India, for one, has scaled up its digital rupee project to more than one million transactions per day processed by commercial banks, and China has been <a href="https://markets.businessinsider.com/news/currencies/dollar-vs-yuan-race-china-us-central-bank-digital-currency-2022-4">running pilot tests with the eYuan</a> for several years. The European Central Bank, meanwhile, has various benchmarks for 2024 to test the digital euro with multiple member nations. The Atlantic Council further illustrated the point by noting the People's Bank of China deploys more than 300 people to its digital currency project, while the Fed commits fewer than 20.In Lipsky's view, it's a miscalculation on the part of US policymakers to forgo paving the way in these advancements."The Fed is not bringing technological solutions to the table," he said. "The miscalculation is thinking the dollar is the world's reserve currency, so there's not a need to innovate. I see that as a defensive posture, rather than a proactive one."To be sure, the US has deployed its long-awaited <a href="https://www.wsj.com/articles/pro-take-fednow-price-tag-is-more-than-half-a-billion-dollars-f103733e" target="_blank" rel="noopener">FedNow</a> program, an interbank settlement system. But even that took years longer than similar projects overseas, and has debuted to limited fanfare. Experts warn it could take years more to become widely adopted. <h3>A fractured future of money</h3>New alternative financial systems are springing up across the world, including in China, that allow efficient cross-border transactions, though the US hasn't emerged as a key player in the space, let alone a leader. These projects take time to build and implement, Lipsky said, but once activated, the innovation and progress could be extremely quick.If the US doesn't emerge as an innovator, the Fed and US dollar could see its standing on the world stage diminish via trade, reserves, and sanctions strength, according to the Atlantic Council."The end-result of less Fed engagement here will be a fractured payment landscape," Lipsky said. "Different models will proliferate from different countries, and that will create more friction. You could have a system that is less efficient and less secure. There won't be a unification of the payment system globally, and that's a US disadvantage."

The Fed's lack of innovation with the dollar means China, India, and others will dominate the digital currency race

The <keyword id="19949639" type="General" weightage="20" keywordseo="rupee" source="keywords">rupee</keyword> depreciated 5 <keyword id="20045456" type="General" weightage="20" keywordseo="paise" source="keywords">paise</keyword> to 83.43 against the <keyword id="19899478" type="General" weightage="20" keywordseo="US" source="keywords">US</keyword> <keyword id="19904292" type="General" weightage="20" keywordseo="dollar" source="keywords">dollar</keyword> in early trade on Monday amid a strong American <keyword id="20256153" type="General" weightage="20" keywordseo="currency" source="keywords">currency</keyword> overseas and withdrawal of foreign funds from domestic equity markets. However, positive sentiment in the domestic equity markets and retreating crude oil prices in international markets supported the Indian currency at lower level, forex traders said. At the interbank foreign exchange, the domestic unit opened weak at 83.39 against the greenback and then slipped further to 83.43, registering a loss of 5 paise compared to its previous closing level. On Friday, the rupee had declined 10 paise to close at 83.38 against the US dollar. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, increased 0.05 per cent to 105.86. Analysts attributed the strengthening dollar to the positive global trends amid firm growth in the world's largest economy, which renewed hope for a reduction in the interest rate by the US Federal Reserve. Brent crude futures, the global oil benchmark, declined 0.92 per cent to USD 88.68 per barrel. In the domestic equity market, the 30-share BSE Sensex was trading 271.80 points or 0.37 per cent higher at 74,001.96. The broader NSE Nifty advanced 72.45 points or 0.32 per cent to 22,492.40. Foreign institutional investors (FIIs) were net sellers in the capital markets on Friday as they offloaded shares worth Rs 3,408.88 crore, according to exchange data. SEE ALSO:<a href="https://www.businessinsider.in/business/auto/webstories/ultraviolette-f77-mach-2-electric-sports-bike-launched-in-india-starting-at-2-99-lakh/slidelist/109615934.cms" target="_blank"></a> <a href="https://www.businessinsider.in/business/auto/webstories/ultraviolette-f77-mach-2-electric-sports-bike-launched-in-india-starting-at-2-99-lakh/slidelist/109615934.cms" target="_blank">Ultraviolette F77 Mach 2 electric sports bike launched in India starting at ₹2.99 lakh</a><a href="https://www.businessinsider.in/tech/news/jiocinema-introduces-new-ad-free-premium-plans-starting-at-29/articleshow/109581033.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/news/jiocinema-introduces-new-ad-free-premium-plans-starting-at-29/articleshow/109581033.cms" target="_blank">An Ambani disruption in OTT: At just ₹1 per day, you can now enjoy ad-free content on JioCinema</a><a href="https://www.businessinsider.in/tech/mobile/news/realme-c65-5g-with-5000mah-battery-120hz-display-launched-starting-at-10499/articleshow/109619597.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/mobile/news/realme-c65-5g-with-5000mah-battery-120hz-display-launched-starting-at-10499/articleshow/109619597.cms" target="_blank">Realme C65 5G with 5,000mAh battery, 120Hz display launched starting at ₹10,499</a>

Rupee declines 5 paise to 83.43 against US dollar in early trade

<ul class="summary-list"><li><keyword id="19910265" type="General" weightage="20" keywordseo="gold-prices" source="keywords">Gold prices</keyword> have hit record highs, thanks to global uncertainties and expectations of central bank rate cuts.</li><li>China's consumers and its central bank are snapping up gold, even as a falling <keyword id="20283765" type="General" weightage="20" keywordseo="yuan" source="keywords">yuan</keyword> makes the metal pricier.</li></ul>China's economy isn't in a great place and its currency is floundering. The tumult is sending prices of gold, considered a safe-haven asset, skyrocketing. <a target="_blank" href="https://markets.businessinsider.com/commodities/realtime-chart/gold-price">Spot gold prices</a> have recently hit record highs — above $2,400 an ounce — thanks to global demand on the back of economic and geopolitical uncertainties. Expectations of <a target="_blank" href="https://markets.businessinsider.com/news/commodities/gold-price-record-high-pce-inflation-hedge-data-rate-cuts-2024-4">central bank interest rate cuts</a> also boost gold's appeal, since the yields on fixed-income assets like bonds typically fall as rates go down. In China, consumers are dealing with an <a target="_blank" href="https://www.businessinsider.com/china-economy-first-quarter-gdp-growth-but-pain-not-over-2024-4">economy</a> that is struggling to recover post-pandemic and a weak yuan that has fallen about 5% against the US dollar over the last year. This makes gold — which, like most internationally-traded commodities, is denominated in the US dollar on the global market — even more expensive for the Chinese consumer. But consumers and China's central bank can't get enough gold. Even Gen Z investors in China are getting into the trend as they buy up tiny bottles of "gold beans," Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-03-16/what-little-gold-beans-are-teaching-young-chinese-about-alternative-savings">reported last month</a>. They're looking for alternatives to China's <a target="_blank" href="https://www.businessinsider.com/china-hong-kong-stock-market-slump-confused-beijing-economy-signals-2024-1">stock markets,</a> which have been flailing over the last few years. China's central bank has also been buying up gold, in much larger quantities than Gen Z's few grams of beans. The People's Bank of China, or PBOC, has been snapping up gold for 17 straight months,with its holdings of the precious metal rising 16% over this period, according to a report from the international trade association <a target="_blank" href="https://www.gold.org/goldhub/gold-focus/2024/04/chinas-gold-market-march-official-gold-reserves-rose-further-wholesale#:~:text=China's%20central%20bank%20announced%20its%2017th%20consecutive%20purchase&amp;text=China's%20gold%20reserves%20rose%20by,17%20months%20(Chart%208).">World Gold Council.</a> This buying spree coincides with a trend among central banks globally to <a target="_blank" href="https://markets.businessinsider.com/news/commodities/gold-price-china-economy-dollar-yuan-central-bank-dedollarization-commodities-2024-3">diversify their holdings</a> to reduce their reliance on the US dollar. In 2023, China's central bank bought 225 tons of gold, per the World Gold Council. Last month, China's gold reserve rose by 5 tons, taking the country's total stash to 2,262 tons. <h2>China has overtaken India as the world's <keyword id="21389468" type="General" weightage="20" keywordseo="largest-gold-buyer" source="Orion">largest gold buyer</keyword></h2>Since China is now home to swarms of gold bugs, the country has decidedly overtaken India as the world's largest buyer of the commodity. The two economies have been jostled in the top spots for years, but China's buying spree last year put India behind. Last year, China's demand for gold jewelry rose 10%, to 630 tons acquired, while India's purchases fell 6%, to 562 tons, according to the <a target="_blank" href="https://www.gold.org/goldhub/research/gold-demand-trends/gold-demand-trends-full-year-2023">World Gold Council.</a> US consumers were a far third place, buying just 136 tons of gold jewelry in 2023. It's not just China. <a target="_blank" href="https://www.gold.org/goldhub/data/gold-reserves-by-country">World Gold Council data</a> shows other central banks,includingPoland and Singapore, have also been snapping up gold to hedge against global economic uncertainties. India's central bank bought 16.2 tons of gold last year. The US did not add any gold to its reserves. However, the US already has the world's largest gold holdings, with about 8,134 tons of the precious metal — far more than second-place Germany, which holds 3,352 tons of the commodity. Despite the gold rush, Georgette Boele, an economist at Dutch bank ABN AMRO, warned about going all-in on the commodity amid record-high prices in an <a target="_blank" href="https://www.abnamro.com/research/en/our-research/gold-watch-the-sky-seems-the-limit-for-gold-prices">April 15 note.</a> "The trend in gold prices is positive and the sky seems to be the limit. However we remain cautious," wrote Boele. She highlighted a seeming paradox in the market: High US interest rates would typically keep gold prices muted, but the opposite is happening. "Even though these changes have occurred in the past, they tend to be temporary in nature meaning that they could last around three to six months," wrote Boele. Lofty gold prices now doesn't mean there's a supply crunch, she wrote. "The amount of central bank buying is not justifying gold prices at current levels," she wrote. Based on that assessment, she said she's keeping her forecast of $2,000 per ounce of gold at the end of 2024, below the current going rate around $2,400.

People in China continue to buy gold even as the currency remains weak!

India's <keyword id="20344433" type="General" weightage="20" keywordseo="forex-reserves" source="keywords">forex reserves</keyword> decreased <keyword id="19944038" type="General" weightage="20" keywordseo="USD" source="keywords">USD</keyword> 2.282 billion to USD 640.334 billion for the seven days ended April 19 in the second consecutive week of drop in the kitty, the Reserve Bank of India (<keyword id="19899808" type="General" weightage="20" keywordseo="RBI" source="keywords">RBI</keyword>) said on Friday. The reserves had dropped USD 5.401 billion to USD 643.162 billion in the previous reporting week, ending a multi-week trend of an increase, which also saw the overall reserves touching a new all-time high of USD USD 648.562 billion for the week ended April 5. In September 2021, the country's forex kitty had reached a high of USD 642.453 billion, which was breached in March this year. The reserves took a hit as the central bank deployed the kitty to defend the <keyword id="19949639" type="General" weightage="20" keywordseo="rupee" source="keywords">rupee</keyword> amid pressures caused majorly by global events, but there had been a steady accretion over the past few months. For the week ended April 19, the <keyword id="20972687" type="General" weightage="20" keywordseo="foreign-currency-assets" source="keywords">foreign currency assets</keyword>, a major component of the reserves, decreased USD 3.793 billion to USD 560.86 billion, according to the data released on Friday. Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound, and yen held in the foreign exchange reserves. <keyword id="20344434" type="General" weightage="20" keywordseo="gold-reserves" source="keywords">Gold reserves</keyword> continued to rise and increased USD 1.01 billion to USD 56.808 billion during the week, the RBI said. The Special Drawing Rights (SDRs) were down USD 43 million to USD 18.034 billion, the apex bank said. India's reserve position with the IMF was also down USD 2 million to USD 4.631 billion in the reporting week, the apex bank data showed. SEE ALSO:<a href="https://www.businessinsider.in/business/auto/webstories/ultraviolette-f77-mach-2-electric-sports-bike-launched-in-india-starting-at-2-99-lakh/slidelist/109615934.cms" target="_blank"></a> <a href="https://www.businessinsider.in/business/auto/webstories/ultraviolette-f77-mach-2-electric-sports-bike-launched-in-india-starting-at-2-99-lakh/slidelist/109615934.cms" target="_blank">Ultraviolette F77 Mach 2 electric sports bike launched in India starting at ₹2.99 lakh</a><a href="https://www.businessinsider.in/tech/mobile/news/realme-c65-5g-with-5000mah-battery-120hz-display-launched-starting-at-10499/articleshow/109619597.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/mobile/news/realme-c65-5g-with-5000mah-battery-120hz-display-launched-starting-at-10499/articleshow/109619597.cms" target="_blank">Realme C65 5G with 5,000mAh battery, 120Hz display launched starting at ₹10,499</a><a href="https://www.businessinsider.in/tech/news/jiocinema-introduces-new-ad-free-premium-plans-starting-at-29/articleshow/109581033.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/news/jiocinema-introduces-new-ad-free-premium-plans-starting-at-29/articleshow/109581033.cms" target="_blank">An Ambani disruption in OTT: At just ₹1 per day, you can now enjoy ad-free content on JioCinema</a>

You Searched For "india currency" and got 13 results

Maldives President Muizzu met with PM Modi in Delhi today. Here’s how it went!

BI India Bureau

India's forex reserves hit record $666.85 billion, driven by surging gold and foreign currency assets

ANI

RBI to allow opening of rupee account outside India

PTI

Rupee opens flat against US dollar in early trade

PTI

Rupee turns flat at 83.73 against US dollar in early trade

PTI

Rupee recovers 5 paise from all-time low to 83.65 against US dollar in early trade

PTI

Crypto currencies have no underlying value, says RBI official

PTI

RBI, Bank Indonesia sign pact to promote use of local currencies for bilateral trade

PTI

De-dollarization is a fad that will backfire on countries trying to move away from the greenback, currency expert says

Jennifer Sor

The Fed's lack of innovation with the dollar means China, India, and others will dominate the digital currency race

Phil Rosen

Rupee declines 5 paise to 83.43 against US dollar in early trade

PTI

People in China continue to buy gold even as the currency remains weak!

Huileng Tan

In second consecutive week of decline, forex kitty drops $2.28 bn to $640.33 bn

PTI

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