India's Forex Reserves Fall As Foreign Investors Head For The Exits

[Protest_again]

These Indians have been deliberately avoiding talking about the biggest danger to the Indian economy. That is, foreign exchange reserves are too low.

At the end of 2021, India's foreign exchange reserves were $569.8 billion. India's external debt exceeded $620 billion. Of course, most of the external debt does not need to be repaid immediately, of which India's recent external debt needs to be repaid is $155.8 billion.

But the biggest danger comes from the widening trade deficit, which has reached $126.7 billion in the first six months of this year. If India continues to maintain such a huge deficit, India's foreign exchange reserves will be exhausted in two years.

To make matters worse, the Indian govt is not only unable to weaken the trade deficit, but even the exchange rate of the Indian Rupee continues to depreciate, which will lead to the continued expansion of India's trade deficit. The Indian govt also needs to spend a lot of foreign exchange to save the exchange rate.

The biggest financial risk in India comes from hedge funds on Wall Street. Once the Indian govt's foreign exchange reserves continue to decrease and the Indian govt does not have enough foreign exchange protection exchange rate, hedge funds will short the Indian rupee and harvest the wealth accumulated by the Indian population over the past decade. Just like hedge funds harvested Southeast Asia in 1997.

India does surplus in service exports. There is deficit in merchandise exports. All in all, our trade deficit is about $100 billion a year which is covered with $80 billion FDI and $85 billion in Remittances.

 

[Bilal9]

There is no inflation in China.

I compared the price of edible oil sent by Joe shearer. The price of the same edible oil in China is only 30% of that in India.

How do you pack your oil in this bag? PE and PP materials will react with oil at high temperature. This will cause cancer!

You think the a-hole company that produced this pack cares? The Fortune brand is owned by Adani, who is Modi's bestie buddy and election campaign financier. Modi's buddies (Adani and Ambani family) own the majority of Indian industry and markets. And these PDF troll Sanghi propagandists make sure the Indian clueless Billions remain idiots and buy their stories and vote for Modi like zombies.

Just another scheme to keep Indians low grade zombies and ensure they exploit these Billions of human beings to make a quick buck.

PE and PP film packaging is banned everywhere in the world for edible oil except India. Even in Bangladesh they use PET (poly Ethylene Terephthalate) which is basically polyester. Not completely safe but a lot better than PE/PP film bags which leaches Bisphenol A into the oil which causes cancer. This happens when these packages get heated which is common in India.

These are disposable plastic pouch and do not cause cancer. No different from the plastic can you have shown.

Once purchased, the oil is transferred into a SS can or glass bottle by the user.

Please don't spread falsehoods, you do not know. See above.

 

[Faxapis]

@Faxapis

Never heard of Titod before, and must be a very old price point.

@MH.Yang

There is no inflation in China.

China maybe an exception.

But the biggest danger comes from the widening trade deficit, which has reached $126.7 billion in the first six months of this year. If India continues to maintain such a huge deficit, India's foreign exchange reserves will be exhausted in two years.

It is no great secret that India's CAD position is intimately linked to energy prices. If crude prices remain greater than USD 100/bbl yeah you are right India will go bust in two years. But I can assure you that in that case almost every other non oil exporting EM will go down a lot before India, including your tallel than mountain, sweetel than honey, deepel than ocean fliend.

Regards

Titod shows current seling price

Here is another site

Soyabean oil Rs. 75 for 1 ltr.

Kings Soyabean Refined Oil 1 Liter PP | BaniyaBabu.Com

baniyababu.com

Sunflower Oil for Rs. 98.50 for 1 ltr.

Fortune Sunflower Oil 1 Litre | BaniyaBabu.Com

baniyababu.com

Also foreign exchange has little to do with trade deficit. India has been running a trade deficit for 75 years, by that logic we should have NO foreign reserve.

See how idiotic and self serving the article is ?

 

[SoulSpokesman]

@Bilal9


Even in Bangladesh they use PET (poly Ethylene Terephthalate) which is basically polyester.

To the best of my knowledge, even in India they use PET bottles. I maybe wrong though

Regards

 

[Bilal9]

@Faxapis

Never heard of Titod before, and must be a very old price point.

@MH.Yang

There is no inflation in China.

China maybe an exception.

But the biggest danger comes from the widening trade deficit, which has reached $126.7 billion in the first six months of this year. If India continues to maintain such a huge deficit, India's foreign exchange reserves will be exhausted in two years.

It is no great secret that India's CAD position is intimately linked to energy prices. If crude prices remain greater than USD 100/bbl yeah you are right India will go bust in two years. But I can assure you that in that case almost every other non oil exporting EM will go down a lot before India, including your tallel than mountain, sweetel than honey, deepel than ocean fliend.

Regards

Lay off the lame Asian jokes please - you are an embarrassment.

@Bilal9


Even in Bangladesh they use PET (poly Ethylene Terephthalate) which is basically polyester.

To the best of my knowledge, even in India they use PET bottles. I maybe wrong though

Regards

They may, for larger bottles.

But I have never ever seen film packs for edible oil in Bangladesh. Only for pasteurized UHT milk which is kept at much cooler temperatures in refrigerators.

 

[Faxapis]

You think the a-hole company that produced this pack cares? The Fortune brand is owned by Adani, who is Modi's bestie buddy and election campaign financier. Modi's buddies (Adani and Ambani family) own the majority of Indian industry and markets. And these PDF troll Sanghi propagandists make sure the Indian clueless Billions remain idiots and buy their stories and vote for Modi like zombies.

Just another scheme to keep Indians low grade zombies and ensure they exploit these Billions of human beings to make a quick buck.

PE and PP film packaging is banned everywhere in the world for edible oil except India. Even in Bangladesh they use PET (poly Ethylene Terephthalate) which is basically polyester. Not completely safe but a lot better than PE/PP film bags which leaches Bisphenol A into the oil which causes cancer. This happens when these packages get heated which is common in India.



Please don't spread falsehoods, you do not know. See above.

PET is known to leach antimony trioxide and phthalates. Both of these are dangerous to health. Not PP or PE.

 

[MH.Yang]

@Faxapis

Never heard of Titod before, and must be a very old price point.

@MH.Yang

There is no inflation in China.

China maybe an exception.

But the biggest danger comes from the widening trade deficit, which has reached $126.7 billion in the first six months of this year. If India continues to maintain such a huge deficit, India's foreign exchange reserves will be exhausted in two years.

It is no great secret that India's CAD position is intimately linked to energy prices. If crude prices remain greater than USD 100/bbl yeah you are right India will go bust in two years. But I can assure you that in that case almost every other non oil exporting EM will go down a lot before India, including your tallel than mountain, sweetel than honey, deepel than ocean fliend.

Regards

To be honest, the reason why India's trade deficit widened rapidly this time (for example, the trade deficit in June 2022 was US $25.6 billion. The trade deficit in June 2021 was US $6.9 billion) did not come from within India. There are mainly two external reasons. First, the war in Ukraine led to the sharp rise in energy and resource prices. Second, the US dollar interest rate hike led to the rapid depreciation of the rupee.

But I mean the danger is that India will lose its ability to resist the hunting of hedge funds. Hedge funds will not wait until the Indian govt has spent all its foreign exchange.

In 1997, when hedge funds hunted sterling, Britain had more than $100 billion in foreign exchange reserves. Note that this is more than 100 billion dollars in the 1990s.

If the Indian govt has enough sense of danger, they should look for huge loans now.

These are disposable plastic pouch and do not cause cancer. No different from the plastic can you have shown.

Once purchased, the oil is transferred into a SS can or glass bottle by the user.

Sorry, I don't know much about Indian cooking oil. In China, bags made of this material are usually only allowed to pack refrigerated food. For example, milk.
Thank you for your explanation.

India does surplus in service exports. There is deficit in merchandise exports. All in all, our trade deficit is about $100 billion a year which is covered with $80 billion FDI and $85 billion in Remittances.

Yes, India also had a trade deficit before. I don't think you know how many times your deficit widened in 2022.

 

[Faxapis]

To be honest, the reason why India's trade deficit widened rapidly this time (for example, the trade deficit in June 2022 was US $25.6 billion. The trade deficit in June 2021 was US $6.9 billion) did not come from within India. There are mainly two external reasons. First, the war in Ukraine led to the sharp rise in energy and resource prices. Second, the US dollar interest rate hike led to the rapid depreciation of the rupee.

But I mean the danger is that India will lose its ability to resist the hunting of hedge funds. Hedge funds will not wait until the Indian govt has spent all its foreign exchange.

In 1997, when hedge funds hunted sterling, Britain had more than $100 billion in foreign exchange reserves. Note that this is more than 100 billion dollars in the 1990s.

If the Indian govt has enough sense of danger, they should look for huge loans now.


Sorry, I don't know much about Indian cooking oil. Thank you for your explanation.


Yes, India also had a trade deficit before. I don't think you know how many times your deficit widened in 2022.

India has recently agreed to settle trade in Indian Rupees.

The rupee's use in trade settlement would help the RBI in conserving foreign exchange.

Explained: Why RBI has allowed rupee settlement system for i ..

 

[MH.Yang]

India has recently agreed to settle trade in Indian Rupees.

The rupee's use in trade settlement would help the RBI in conserving foreign exchange.

Explained: Why RBI has allowed rupee settlement system for i ..

This is useless.

No one would be willing to trade in rupees, except Bhutan. India and Russia use CNY for transactions.

Indians should hurry to find loans. Once hedge funds start hunting, you can't find any loans. The influence of Wall Street is certainly stronger than that of the Indian govt.

 

[Faxapis]

This is useless.

No one would be willing to trade in rupees, except Bhutan. India and Russia use CNY for transactions.

Indians should hurry to find loans. Once hedge funds start hunting, you can't find any loans. The influence of Wall Street is certainly stronger than that of the Indian govt.

India and Russia DOES NOT USE CNY for transactions.

You have been lied to by u'r govt.

India Russia uses Rupee-Ruble trade and has been doing it for the past couple of decades.

I will pass on u'r earnest recommendations to our govt. But don't hold u'r breath.

 

[MH.Yang]

India and Russia DOES NOT USE CNY for transactions.

You have been lied to by u'r govt.

India Russia uses Rupee-Ruble trade and has been doing it for the past couple of decades.

I will pass on u'r earnest recommendations to our govt. But don't hold u'r breath.

The Chinese government and media usually ignore India and the Indian rupee. They are not interested in lying for India

My message comes from Indian media.

EXCLUSIVE India's top cement maker paying for Russian coal in Chinese yuan​

EXCLUSIVE India's top cement maker paying for Russian coal in Chinese yuan

India's biggest cement producer, UltraTech Cement , is importing a cargo of Russian coal and paying using Chinese yuan, according to an Indian customs document reviewed by Reuters, a rare payment method that traders say could become more common.

www.reuters.com

 

[Faxapis]

The Chinese government and media usually ignore India and the Indian rupee. They are not interested in lying for India

My message comes from Indian media.

EXCLUSIVE India's top cement maker paying for Russian coal in Chinese yuan​

EXCLUSIVE India's top cement maker paying for Russian coal in Chinese yuan

India's biggest cement producer, UltraTech Cement , is importing a cargo of Russian coal and paying using Chinese yuan, according to an Indian customs document reviewed by Reuters, a rare payment method that traders say could become more common.

www.reuters.com

That was BEFORE RBI made it possible for International trade settlements to be made in Indian Rupees.

Tough luck.

 

[MH.Yang]

That was BEFORE RBI made it possible for International trade settlements to be made in Indian Rupees.

Tough luck.

This is the trade on June 29, 2022. Do you think it is very old news?

okya

Don't worry, you can show me a news about Russia using the rupee for large-scale trade.

 

[Bilal9]

PET is known to leach antimony trioxide and phthalates. Both of these are dangerous to health. Not PP or PE.

Please post links to these studies that say leaching is a problem. The FDA does not think so but you do.

 

[Faxapis]

This is the trade on June 29, 2022. Do you think it is very old news?

okya

Don't worry, you can show me a news about Russia using the rupee for large-scale trade.

RBI issued notification for Rupee Trade settlement on 11 July, 2022.

So yes, its Old news.

The Rupee-Rouble trade arrangement is an alternative payment mechanism to settle dues in rupees instead of Dollars or Euros. The idea was first conceived in 1953 under the Indo-Soviet trade agreement.

Pretty much ALL trade between India Russia happens this way.

Please post links to these studies that say leaching is a problem. The FDA does not think so but you do.

Antimony leaching from polyethylene terephthalate (PET) plastic used for bottled drinking water - PubMed

Antimony is a regulated contaminant that poses both acute and chronic health effects in drinking water. Previous reports suggest that polyethylene terephthalate (PET) plastics used for water bottles in Europe and Canada leach antimony, but no studies on bottled water in the United States have...

pubmed.ncbi.nlm.nih.gov

Polyethylene Terephthalate May Yield Endocrine Disruptors | Environmental Health Perspectives | Vol. 118, No. 4

BackgroundRecent reports suggest that endocrine disruptors may leach into the contents of bottles made from polyethylene terephthalate (PET). PET is the main ingredient in most clear plastic containers used for beverages and condiments worldwide and has previously been generally assumed not to...

ehp.niehs.nih.gov

https://hal.archives-ouvertes.fr/hal-00683918/document