UAE further collaboration with India for Local Currency Trade

[Aanuoluwatofunmi]

source

Certainly there's going to be a great economic impact as the Bank of India (BOI) partner deals to collaborate with United Arab Emirates (UAE) in creating an friendly synergy that could bring them both on achieving a common economical trade between the regions using their local currencies altogether in achieving a common goal, just as it could be recalled that recently, the two parties have been engaging on a mutual trade base on the MoU signed together sometimes earlier n the beginning of this year https://twitter.com/GoldTelegraph_/status/1597060306470985730?t=sJuiWnNHIyzeFe9tVsQAJw&s=19 this free economic trade has ever been the cause to thier cordial relationship that further births to what we are seing today as they both have also agreed in trading together using their own local currencies, it is also notably that India and UAE are part of the fastest growing economics in the world including their involvements in the digital era of cryptocurrency and bitcoin, which will further create an expansion opportunity for the growth of their economy both, could other countries learn something from this, and is the collaboration a lifetime advantage to both countries.

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[Ucy]

source

Certainly there's going to be a great economic impact as the Bank of India (BOI) partner deals to collaborate with United Arab Emirates (UAE) in creating an friendly synergy that could bring them both on achieving a common economical trade between the regions using their local currencies altogether in achieving a common goal, just as it could be recalled that recently, the two parties have been engaging on a mutual trade base on the MoU signed together sometimes earlier n the beginning of this year https://twitter.com/GoldTelegraph_/status/1597060306470985730?t=sJuiWnNHIyzeFe9tVsQAJw&s=19 this free economic trade has ever been the cause to thier cordial relationship that further births to what we are seing today as they both have also agreed in trading together using their own local currencies, it is also notably that India and UAE are part of the fastest growing economics in the world including their involvements in the digital era of cryptocurrency and bitcoin, which will further create an expansion opportunity for the growth of their economy both, could other countries learn something from this, and is the collaboration a lifetime advantage to both countries.

Ofcourse, it's partly due to increasing price of dollar and its volatility. I read Ghana is trying similar thing but with gold. I wish the country takes my advice and do the local currency trading.
 It's nice to see India so obedient to order even though it isn't really a Christian nation. It's quite hard dealing with people you think will understand. I hope the country is greatly favored.

[gantez]

The two countries can increase their trade friendship if this happen and the success will encourage more countries to try such mode of trading. I think is part of why CBDC is introduced by some countries instead of to rely on the paper money. Mutual trading agreement can happen but separate to bitcoin. Bitcoin is different from fiat currency.

[jackg]

The two countries can increase their trade friendship if this happen and the success will encourage more countries to try such mode of trading.

div class="quoteheader">Quote from: gantez on November 28, 2022, 09:33:28 AM

[hugeblack]

I do not think that it can be going far in such commercial exchanges, most of Arabic Gulf countries began to complain about the American delay in the interest of some of the region's issues and thus began with some moves that are considered to be reduced from the use of the US dollar, but I do not expect these things to go away.

The volume of trade exchange between the United Arab Emirates and India is large, and the two countries will not use local currencies unless it has a real deterioration in relations with the United States, which has not happened.

[tabas]

This collaboration is pretty normal in most countries when they've got mutual interest from each other and to strengthen their bond and partnership.
While this time, it's no longer the old thing and stuff that we see because there's something new. They collab to strengthen their economies and as well as could also have that trade with bitcoin and cryptocurrencies. But if this is a collab that's just all about fair trade through their local currencies, we may see them upgrade it and soon they'll talk about bitcoin and their ties about it.

[coupable]

India is one of the most important economic partners of the United Arab Emirates, which has one of the most developed economies in the world today. In addition to the volume of trade exchanges between the two countries, the UAE attracts a large part of its labor force from India. With entering into a cooperation agreement, the UAE dirham will open up to a huge market, which means an increase in its value with an increase in demand in the Indian market. India, in turn, will have a foothold in an emerging market that includes the largest financial institutions in the world, which will enhance the position of its local currency and its recovery after a long period of stagnation due to both internal and global crises.

[Hydrogen]

The UAE and india trade agreement.

Is like the agreement between amazon and UPS to provide free shipping to consumers.

While it might function as designed in the short term, it could conceivably break under enough stress from inflation, supply chain disruptions and other abnormalities.

The united states and china were the two major powers. But in recent times, we're witnessing a shift in power as nations like iran and turkey throw their support behind russia.

This latest agreement between india and the UAE could also represent a power shift as china and india have been rivals on the brink of war in the past. There is a chance that this agreement represents a shift away from china, towards india. On the premise of china's sphere of power and influence being on a decline.

There is a chance that we could see a future alliance between russia, india, iran, turkey and the UAE. As well as some other states in the region.

But if we're discussing facts, I have to admit that I'm an american who doesn't pay much attention to politics in europe and asia. Everyone who resides in that region should, in theory, know far more about this than I do.

[DrBeer]

the solution is not new, but .. as practice has shown, it is not the most effective. No, I'm not saying that it doesn't make any sense. It has. Subject to certain conditions:
1. The balance of economic interaction must be balanced. Why ? Because no currency is really freely convertible, and for the most part will only be used for mutual settlements between these two countries.
2. Each currency must have quality collateral. Everything is more or less here - on the one hand, oil, on the other, the largest economy in the region, and indeed the world.
3. Since both economies are not self-sufficient, and still largely dependent on the outside world, this project will have a very narrow "corridor" of use, because both countries will still gravitate towards receiving income in more liquid currencies (dollap, euro)

[Findingnemo]

Maybe to small extent this can be possible but most currencies are probably inflated high at this moment so this won't be taken into big deals between the trades, for sure they will go with reserves.

But what is the difference, by ignoring the reserve currency and trading between their own paper money doesn't make any change too right?

[pooya87]

This is yet another sign of the new world order that has been established a while ago.
A couple of years ago I mentioned the fact that some countries are abandoning US dollar and the Unipolar World is over but some people didn't believe me. Now we are seeing more countries, even tiny ones like UAE are jumping on the wagon of abandoning US dollar and joining the New World Order in the new MultiPolar world.

[hugeblack]

There is a chance that we could see a future alliance between russia, india, iran, turkey and the UAE. As well as some other states in the region.

I do not think that such an alliance might be formed. Iran controls three Emirati islands^[1] and UAE considers a strategic depth if countries decide to start an alliance against Iran. Therefore, the United Arab Emirates has to choose between Iran or the Western world, and I do not think that the Emirates will choose Iran due to the large volume of exchange with the Western world. , Ensuring security of oil and energy, and because of Iran's seizure of the UAE islands.


[1] https://www.uae-embassy.org/discover-uae/foreign-policy/occupied-uae-islands

This is yet another sign of the new world order that has been established a while ago.
A couple of years ago I mentioned the fact that some countries are abandoning US dollar and the Unipolar World is over but some people didn't believe me. Now we are seeing more countries, even tiny ones like UAE are jumping on the wagon of abandoning US dollar and joining the New World Order in the new MultiPolar world.

The formation of a new world (MultiPolar world) order requires the emergence of a world war, which has not happened so far, so the best thing that will happen is a new cold war.

[pooya87]

The formation of a new world (MultiPolar world) order requires the emergence of a world war, which has not happened so far, so the best thing that will happen is a new cold war.

Not necessarily. The previous world order where 2 super powers (US and Soviet Union) each controlled half the world didn't go away with a world war. It was replaced when one of the super powers (ie. Soviet Union) fell apart from within.
This new world order is being introduced in a very similar fashion where the United States is weakening from within and possibly completely falling apart in the next 5 to 10 years.

[Die_empty]

The two countries can increase their trade friendship if this happen and the success will encourage more countries to try such mode of trading. I think is part of why CBDC is introduced by some countries instead of to rely on the paper money. Mutual trading agreement can happen but separate to bitcoin. Bitcoin is different from fiat currency.

Sourcing for dollars to carryout international trade have been one of the challenge of most developing nations. Although using the dollars makes international trading easy but it has also promotes the influence of external actors in the economy of some nations. Using society for Worldwide Interbank Financial Telecommunications (SWIFT) have made the dollar a major international trade currency.

Trading in local currencies would reduce the challenges of sources of dollars and reduce external controls from powerful nations. I also totally agree that bitcoin would indeed a good alternative in international trades because it would give the nations involved equal benefits and opportunities.   

[Sithara007]

Someone please correct me in case I am wrong. The United Arab Emirates Dirham (AED) is pegged against the US Dollar, right? In case of the Indian currency (Rupee), it is free-float but that is not the case with AED. So effectively the Indians are trading against the USD when they are dealing in AED. And as per my understanding, almost all the currencies within the Gulf (GCC) region are pegged to the US Dollar. And although it is true that the GCC currencies are regarded as some of the strongest national currencies in the world, they are not protected against any potential drawback from the USD such as inflation.

[Fortify]

Certainly there's going to be a great economic impact as the Bank of India (BOI) partner deals to collaborate with United Arab Emirates (UAE) in creating an friendly synergy that could bring them both on achieving a common economical trade between the regions using their local currencies altogether in achieving a common goal, just as it could be recalled that recently, the two parties have been engaging on a mutual trade base on the MoU signed together sometimes earlier n the beginning of this year https://twitter.com/GoldTelegraph_/status/1597060306470985730?t=sJuiWnNHIyzeFe9tVsQAJw&s=19 this free economic trade has ever been the cause to thier cordial relationship that further births to what we are seing today as they both have also agreed in trading together using their own local currencies, it is also notably that India and UAE are part of the fastest growing economics in the world including their involvements in the digital era of cryptocurrency and bitcoin, which will further create an expansion opportunity for the growth of their economy both, could other countries learn something from this, and is the collaboration a lifetime advantage to both countries.

These sort of trade arrangements are ultimately fairly small scale and have limited impact on actual trade. What you will likely find is that one of these two countries has imposed this arrangement on the other instead of it being for mutual benefit. If certain countries within the UAE, the bigger oil providers for example, have said we want you to pay us in our currency in return for oil then India might bend over backwards to answer that need. They are definitely looking for methods that they can use in future to stop external pressure from other countries, like Europe, America and China. Ultimately it is probably more like a trial run that will end up frittering out.

[n0ne]

Certainly there's going to be a great economic impact as the Bank of India (BOI) partner deals to collaborate with United Arab Emirates (UAE) in creating an friendly synergy that could bring them both on achieving a common economical trade between the regions using their local currencies altogether in achieving a common goal, just as it could be recalled that recently, the two parties have been engaging on a mutual trade base on the MoU signed together sometimes earlier n the beginning of this year https://twitter.com/GoldTelegraph_/status/1597060306470985730?t=sJuiWnNHIyzeFe9tVsQAJw&s=19 this free economic trade has ever been the cause to thier cordial relationship that further births to what we are seing today as they both have also agreed in trading together using their own local currencies, it is also notably that India and UAE are part of the fastest growing economics in the world including their involvements in the digital era of cryptocurrency and bitcoin, which will further create an expansion opportunity for the growth of their economy both, could other countries learn something from this, and is the collaboration a lifetime advantage to both countries.

These sort of trade arrangements are ultimately fairly small scale and have limited impact on actual trade. What you will likely find is that one of these two countries has imposed this arrangement on the other instead of it being for mutual benefit. If certain countries within the UAE, the bigger oil providers for example, have said we want you to pay us in our currency in return for oil then India might bend over backwards to answer that need. They are definitely looking for methods that they can use in future to stop external pressure from other countries, like Europe, America and China. Ultimately it is probably more like a trial run that will end up frittering out.

It is a trial and in some view it also looks like what has been said in an earlier post as an agreement between Amazon and UPS. Already India have made similar transaction with Russia for oil when rest of the countries were requested to pay in Ruble. Success of this agreement will surely make more countries to follow it and make their own currencies stronger.

[AmoreJaz]

Certainly there's going to be a great economic impact as the Bank of India (BOI) partner deals to collaborate with United Arab Emirates (UAE) in creating an friendly synergy that could bring them both on achieving a common economical trade between the regions using their local currencies altogether in achieving a common goal, just as it could be recalled that recently, the two parties have been engaging on a mutual trade base on the MoU signed together sometimes earlier n the beginning of this year https://twitter.com/GoldTelegraph_/status/1597060306470985730?t=sJuiWnNHIyzeFe9tVsQAJw&s=19 this free economic trade has ever been the cause to thier cordial relationship that further births to what we are seing today as they both have also agreed in trading together using their own local currencies, it is also notably that India and UAE are part of the fastest growing economics in the world including their involvements in the digital era of cryptocurrency and bitcoin, which will further create an expansion opportunity for the growth of their economy both, could other countries learn something from this, and is the collaboration a lifetime advantage to both countries.

These sort of trade arrangements are ultimately fairly small scale and have limited impact on actual trade. What you will likely find is that one of these two countries has imposed this arrangement on the other instead of it being for mutual benefit. If certain countries within the UAE, the bigger oil providers for example, have said we want you to pay us in our currency in return for oil then India might bend over backwards to answer that need. They are definitely looking for methods that they can use in future to stop external pressure from other countries, like Europe, America and China. Ultimately it is probably more like a trial run that will end up frittering out.

It is a trial and in some view it also looks like what has been said in an earlier post as an agreement between Amazon and UPS. Already India have made similar transaction with Russia for oil when rest of the countries were requested to pay in Ruble. Success of this agreement will surely make more countries to follow it and make their own currencies stronger.

we need more cooperation and collaboration, not war. so this move is much much better for the economy of both countries. they are also helping their people in some ways. if it is not good, they can always go back to where they are. but if it is beneficial, then, other countries may follow such initiative.
we need more collaborations, rather than disagreements.

[DrBeer]

The formation of a new world (MultiPolar world) order requires the emergence of a world war, which has not happened so far, so the best thing that will happen is a new cold war.

Not necessarily. The previous world order where 2 super powers (US and Soviet Union) each controlled half the world didn't go away with a world war. It was replaced when one of the super powers (ie. Soviet Union) fell apart from within.
This new world order is being introduced in a very similar fashion where the United States is weakening from within and possibly completely falling apart in the next 5 to 10 years.

I will be brief - if the US collapses and collapses, the global global crisis will be of such magnitude that we will most likely move back to the level of the Stone Age, conditionally.
The fall of such an economy is not beneficial to anyone, because it will lead to critical problems for many years, if not decades.
More precisely, it won’t affect, or even become a little profitable, for those who already had nothing, didn’t even have minimal prospects in the existing world, and this someone was a complete empty shell in the world system.
It's like sanctions, on the example of modern Russia - for 60% of the population, sanctions really did not worsen life in any way. Because their standard of living is already at the level of the 18th century

But how many economies will be pulled to the bottom by the wreckage of the US economy - you can’t even imagine! Therefore, no one will have real benefits. Some will only have "moral satisfaction" - "finally they have become like us"

[pooya87]

if the US collapses and collapses, the global global crisis will be of such magnitude that we will most likely move back to the level of the Stone Age, conditionally.

That is exactly the reason why a large number of countries have been moving away from US in the past couple of years. The new World Order is already in place and is going to significantly decrease the effects of that collapse every day. In the end it will only be countries that heavily depend on US or are US colonies that will go back to the "stone age" as you put it.