India & Japan to go for $10-bn currency swap

[IndoCarib]

New Delhi: The Reserve Bank of India will enter into a $10-billion currency swap arrangement with its Japanese counterpart, Bank of Japan (BoJ), this week. The move would strengthen the Indian central bank’s armoury to tackle any liquidity crisis and volatility in the currency market.

Under the deal, the two central banks will supply each other with up to $5 billion from their foreign currency reserves for possible market intervention, in the event of a financial turmoil.

For India, the swap arrangement is all the more important and it might actually draw into the facility, given the situation of net capital outflows, an exacerbating current account deficit (which could climb to a troublesome 4.9% of GDP for the Oct-Dec quarter) and the weak composition of reserves. India is struggling to meet the projected level ($72 billion) of capital inflows for this fiscal and even the most optimistic forecasts don’t put the figure above...

India & Japan to go for $10-bn currency swap

 

[Chinese-Dragon]

For India, the swap arrangement is all the more important and it might actually draw into the facility, given the situation of net capital outflows, an exacerbating current account deficit (which could climb to a troublesome 4.9% of GDP for the Oct-Dec quarter) and the weak composition of reserves. India is struggling to meet the projected level ($72 billion) of capital inflows for this fiscal and even the most optimistic forecasts don’t put the figure above...

That sounds pretty bad.

 

[IndoCarib]

That sounds pretty bad.

You guys dont even spare your closet ally

"Arrangement raises questions

However, industry insiders suspect that China will later convert the arrangement into a loan as it has expressed little interest in trading in Pakistani currency. On the loan, it can charge mark-up at a rate more than the Shanghai interbank market rate.

The insiders said when Pakistan proposed Beijing to sign the currency swap agreement China refused to deal in Pakistani currency. They said Pakistan had also proposed China to buy its treasury bills with the swap money, but Beijing refused ".

Pakistan, China sign currency swap agreement – The Express Tribune

 

[DelhiDareDevil]

You guys dont even spare your closet ally

"Arrangement raises questions

However, industry insiders suspect that China will later convert the arrangement into a loan as it has expressed little interest in trading in Pakistani currency. On the loan, it can charge mark-up at a rate more than the Shanghai interbank market rate.

The insiders said when Pakistan proposed Beijing to sign the currency swap agreement China refused to deal in Pakistani currency. They said Pakistan had also proposed China to buy its treasury bills with the swap money, but Beijing refused ".

Pakistan, China sign currency swap agreement – The Express Tribune

China goes after business choice first.

So does Japan, but Japan knows India is a growing economy and wants to have a friendly relationship with India.

 

[IndoCarib]

China goes after business choice first.

So does Japan, but Japan knows India is a growing economy and wants to have a friendly relationship with India.

Little bit off topic, but I think very much relevant here. But China loving Pakistanis may not agree.

Pak is China's low cost hedge against India

 

[Chinese-Dragon]

You guys dont even spare your closet ally

"Arrangement raises questions

However, industry insiders suspect that China will later convert the arrangement into a loan as it has expressed little interest in trading in Pakistani currency. On the loan, it can charge mark-up at a rate more than the Shanghai interbank market rate.

The insiders said when Pakistan proposed Beijing to sign the currency swap agreement China refused to deal in Pakistani currency. They said Pakistan had also proposed China to buy its treasury bills with the swap money, but Beijing refused ".

Pakistan, China sign currency swap agreement – The Express Tribune

Did you even read the article you posted?

It said "insiders suspect that China will later convert the arrangement into a loan".

What a bunch of BS. Who are these anonymous "insiders", and how can they see the future?

 

[IndoCarib]

Did you even read the article you posted?

It said "insiders suspect that China will later convert the arrangement into a loan".

What a bunch of BS. Who are these anonymous "insiders", and how can they see the future?

When a country 'suspects' its closest ally, the word 'ally' loses its meaning ! You may agree ! Right ?

BTW, Its from Pakistani media

 

[Chinese-Dragon]

When a country 'suspects' its closest ally, the word 'ally; loses its meaning ! You may agree ! Right ?

Who exactly is doing the "suspecting" here?

Since these "insiders" were anonymous. Do you think it was Zardari in disguise?

 

[Chinese-Dragon]

BTW, Its from Pakistani media

So when the Pakistani media says that anonymous "insiders" said something, then you believe that anonymous "insiders" said it? Fair enough.

Not that I have any problem with this article, but I'm sure you know what the Pakistanis themselves say about the Express Tribune.

- Always worth keeping in mind:

About – The Express Tribune

The Express Tribune is the first internationally affiliated newspaper in Pakistan. Partnered with The International Herald Tribune – the global edition of The New York Times

Nice try though. Even the Pakistanis don't like it.

 

[tamygu]

You guys dont even spare your closet ally

"Arrangement raises questions

However, industry insiders suspect that China will later convert the arrangement into a loan as it has expressed little interest in trading in Pakistani currency. On the loan, it can charge mark-up at a rate more than the Shanghai interbank market rate.

The insiders said when Pakistan proposed Beijing to sign the currency swap agreement China refused to deal in Pakistani currency. They said Pakistan had also proposed China to buy its treasury bills with the swap money, but Beijing refused ".

Pakistan, China sign currency swap agreement – The Express Tribune

Is there any doubt about china giving middle finger to pakistan at right time.their friendshisp history is replete with all such fingering.

 

[IndoCarib]

Who exactly is doing the "suspecting" here?

Since these "insiders" were anonymous. Do you think it was Zardari in disguise?

Zardari is too sick or too blind to notice Chinese intentions. It may be true Pakistani nationalists for all you care !

 

[somebozo]

Did you even read the article you posted?

It said "insiders suspect that China will later convert the arrangement into a loan".

What a bunch of BS. Who are these anonymous "insiders", and how can they see the future?

Speculative columnist bank rolled by the opposite side as they see their bottoms burned..the same kind of people who took US economy down the drain!

 

[Chinese-Dragon]

Zardari is too sick or too blind to notice Chinese intentions. It may be true Pakistani nationalists for all you care !

So basically, someone "anonymous" says that they "suspect" something might happen in the "future".

And an Indian like yourself converts that into: "You guys dont even spare your closet ally."

Logic fail.

 

[somebozo]

Is there any doubt about china giving middle finger to pakistan at right time.their friendshisp history is replete with all such fingering.

Actually not as China has just announced five years tax break and easy loans from ICBC for Pakistani company wishing to establish presence in Kashgar - Xinjiang border region

---------- Post added at 04:31 AM ---------- Previous post was at 04:30 AM ----------

So basically, someone "anonymous" says that they "suspect" something might happen in the "future".

And an Indian like yourself converts that into: "You guys dont even spare your closet ally."

Logic fail.

You are expect logic from the kind of people who said, we are going to beat China by 2010, 2012, 2020 but right now they are worred about their own financial turmoil!

 

[IndoCarib]

So basically, someone "anonymous" says that they "suspect" something might happen in the "future".

And an Indian like yourself converts that into: "You guys dont even spare your closet ally."

Logic fail.

Go easy on the smileys, will ya ? Here, its on other Pak media

Associated Press Of Pakistan ( Pakistan's Premier NEWS Agency ) - Pakistan, China sign six agreements to bolster trade, economic cooperation

China announces currency swap with Pakistan | Business | DAWN.COM