The government of India has a list of 23 countries for currency swap

The list includes oil exporting nations such as Angola, Algeria, Nigeria, Oman, Iran, Iraq, Venezuela, Qatar, Yemen and Saudi Arabia.

Other countries on the list include Russia, Japan, Singapore, Australia, Indonesia, South Korea, Malaysia, Mexico, South Africa and Thailand.

www.thehindubusinessline.com... cle5494318.ece
www.domain-b.com...
articles.economictimes.indiatimes.com...

Hot money from the west seems to have unnerved India. The Rupee has depreciated 20-30% this year. This comes around the time when FDI in India wasn't allowed to come in full force. Many other countries are setting up swaps including Japan, China, Russia, even some US allies like UK and Germany. Is the world starting to reject the dollar and slowly ween off it?

I don't have much faith in the Dollar so why should other countries have faith in it. The US took a lot of risks with it's economy. They allowed some pretty dishonest people to start working in the stockmarkets and other financial sectors of this nation. I don't care who started the problem, fix it and clean up the mess already. They are just pushing it down the road right past the repair shop thinking it will restart without fixing it.

rickymouse
I don't have much faith in the Dollar so why should other countries have faith in it. The US took a lot of risks with it's economy. They allowed some pretty dishonest people to start working in the stockmarkets and other financial sectors of this nation. I don't care who started the problem, fix it and clean up the mess already. They are just pushing it down the road right past the repair shop thinking it will restart without fixing it.

I've been reading a lot. The pattern I see is this-
Bring political change if a country is not pro business.
Once pro business invest in the country
Punish the country if it tries to protect its interest. Example it wasn't in India's interest to let Wally World into its retail sector. Rupee drops 20%.
Invest and divest in the country based on if they tow your line or not. This comes after you forced them to open their markets to you.
If they decide to drop you, push for a regime change. Example Syria, Egypt. I am not sure if this works with China, India or any other large country.

The U.S will not just stand by and allow the dollar to be cast aside as the recognised world currency. She hasn't built all these arms to just idly sit back and take a stuffing, if she is attacked in this way, then beware.

I think that they were WANT to step away slowly from the dollar, but I'm not sure if they will end up doing so. Everybody knows our country is unstable, and the only thing more unstable are our leaders. They would go crazy and unleash our military to go "spank" the other country(s), so to speak, if they tried to drop the dollar( middle east in the early 90's, case and point).

it'd be world war 3. Us against everyone else..... Just my opinion

reply to post by dothedew


Don't worry, it won't be U.S against everybody else, you can count on the U.K to be on your side.

reply to post by Cobaltic1978

You do realize the UK is actively working on many currency swap agreements?
www.bbc.co.uk...
www.reuters.com...

Currency swaps are fine if you intend to catch everyone. With the RMB/CNY going global and many countries going for direct swaps with the yuan, once agreed too and trading begins, the US could flush the dollar and financially wipe out all contenders in a single blow. Instate the new dollar and go unopposed leaving everyone no choice but to accept it globally as the one and only currency. Even the markets are prime for the taking, its already happened twice before in 1815 and 1929, as they say, third times the charm.

pstrron
... the US could flush the dollar and financially wipe out all contenders in a single blow. Instate the new dollar and go unopposed leaving everyone no choice but to accept it globally as the one and only currency....

Easy said, but once you understood how currency market mechanic, it useless to do.

But then, no worry, TPTB will ensure dollar will remain the global currency. If all else fails we still have SDR as the backup.
SDR Valuation

reply to post by an0nThinker


Who can seriously blame the rest of the world to prepare for what is comming when it's the rational thing to do? After everything that has come to be known in recent years?
The U.S. public has proven to be widely indifferent about the the underlying economic reasons for the GFC, so there is no reason to hope they will do / change anything about it.

reply to post by an0nThinker


The US dollar must fall.

The first trumpet will sound.

God Bless,

pstrron
Currency swaps are fine if you intend to catch everyone. With the RMB/CNY going global and many countries going for direct swaps with the yuan, once agreed too and trading begins, the US could flush the dollar and financially wipe out all contenders in a single blow. Instate the new dollar and go unopposed leaving everyone no choice but to accept it globally as the one and only currency. Even the markets are prime for the taking, its already happened twice before in 1815 and 1929, as they say, third times the charm.

Flushing it out will cause more harm then good. We print an unlimited number and never face hyper inflation. Yes, the markets will take a tumble however people will just adopt the Euro, Renminbi, Yen some other basket currency. What do you think will happen when the world wants it money back for their reserves?