Pakistan , China may trade in local currencies

[Wadaich]

Is it a beginning of a new financial era? Will the trade in local currency rid us from the enslavement of Dollar ($)? Is it a beginning of the end of the $ rule? I request for the comments on its +ve and -ve impacts on our economics.

http://ejang.jang.com.pk/12-22-2010/Karachi/images/06_02.gif

 

[itsnotme90]

Re: پاکستان اور چین کا لوکل کرنسی میں تجارت کر

Actually few days ago china made a same deal with russia & china is trying to use its currency in every country so they can use their influence over the world & dollar will loose its strength. When china made a deal with russia dollar got weaken in markets & this is good for us that we can use an alternate currency in future & america will no have any influence left over the world.

 

[Wadaich]

Re: پاکستان اور چین کا لوکل کرنسی میں تجارت کر

Actually few days ago china made a same deal with russia & china is trying to use its currency in every country so they can use their influence over the world & dollar will loose its strength. When china made a deal with russia dollar got weaken in markets & this is good for us that we can use an alternate currency in future & america will no have any influence left over the world.

How will the trade in local currency affect our foreign reserves in dollar?

 

[sahiL]

Re: پاکستان اور چین کا لوکل کرنسی میں تجارت کر

i think it,ll only affect the developing countries.......im sure it,ll hurt india....

 

[Wadaich]

Re: پاکستان اور چین کا لوکل کرنسی میں تجارت کر

i think it,ll only affect the developing countries.......im sure it,ll hurt india....

I think it will not affect India. I am taking it in global context. Suppose any two countries make oil deal in their local currencies. Should it devalue $?

 

[qamararman]

Re: پاکستان اور چین کا لوکل کرنسی میں تجارت کر

very nice i like it

 

[zaigham]

Re: پاکستان اور چین کا لوکل کرنسی میں تجارت کر

yes it will effect dollar my friend ... look if some country try to do trade in local currencies than after a time they will sattel the exchange rate between each other ... any thing in the world is important when u use it .. when u dont need dollar to do trade .. than it will atoumaticlay develue dollar.. because it will not be required any more..... who is having control over dollar .. and when it will not be required they will lose control. it will take time but it will work .. inshalah

 

[itsnotme90]

Re: پاکستان اور چین کا لوکل کرنسی میں تجارت کر

The demand of dollar make it stronger. thats why iran sell its oil only in euro and thats why dollar got pretty weaker in past & if other countries will not need dollar to trade then no need of IMF & world bank black mailing to poor countries coz china will give them loan to survive in the world coz their currency will be acceptable to buy stuff from russia china iran pakistan & so on so every body can show two fingers to usa

 

[gazoomartian]

Re: پاکستان اور چین کا لوکل کرنسی میں تجارت کر

i think it,ll only affect the developing countries.......im sure it,ll hurt india....

It will hurt India BIG TIME> The weaker the dollar value, the more Indian cash reserve lose its value. But the problem is that with weak dollar, Pak's buying power will also be weakened. Its a mess that Nixon has created since 1971.

Nixon threatened Iran when Iran announced they will not accept oil revenue in US dollars. Nixon said 'It will not be good to their (Iran's) health'

The sooner we get out of this dollar mess the better off the world be, though will hurt initially.

 

[gazoomartian]

Re: پاکستان اور چین کا لوکل کرنسی میں تجارت کر

I think it will not affect India. I am taking it in global context. Suppose any two countries make oil deal in their local currencies. Should it devalue $?

of course! value of a currency is determined by its demand. Less demand less value

 

[kapadias]

In past we were also Exporting in all currencies including Pak Rs. but after 9/11 export in Pak Rs. was banned. Definitely it was on the order of America and our "Ghulam" Rulers accepted the order of America.

Now if a payment is sent from Saudi Arabia to Pakistan on Wednesday evening the same will be held there because on Thursday and Friday Banks are Closed in Saudi Arabia. On Saturday Morning they will forward this to New York (Because it is in dollars) and then it will reachin in New York the same day but will be held there because Saturday and Sunday are closed in America. Now on Monday morning they will move it but in Amercia, Banks open on Monday when the days is over in Pakistan. So it will reach to Pakistan some time on Tuesdaay and through State Bank it will reach to the Head Office of concerned Bank and from there it will be transfered to the concerned Br. of that particular Bank. So it will reach late on Tuesday or on Wednesday.

Now you must realize that a payments which was sent by a buyer from Saudi Arabia on wednesday is reaching to the destination on next wednesday i.e. after one week.

Not only this, approximately a sum of $ 50 per transaction will be deducted by the American Bank who is transmitting this payment from America. Is this not a Jagga Tax which Americans have awarded to their Baanks through this restriction imposed on the countries like Pakistan not to Export in their own currency ?

On the other hand if we remit the same in Pak Currency from Saudi Arabia or Dubai it will reach next Monring, saving 6 days of our exporters and nothing will be deducted in transit as bank charges.

So now our Govt. have to lift this restriction of not to Export in Pak Currency.

 

[Wadaich]

In past we were also Exporting in all currencies including Pak Rs. but after 9/11 export in Pak Rs. was banned. Definitely it was on the order of America and our "Ghulam" Rulers accepted the order of America.

Now if a payment is sent from Saudi Arabia to Pakistan on Wednesday evening the same will be held there because on Thursday and Friday Banks are Closed in Saudi Arabia. On Saturday Morning they will forward this to New York (Because it is in dollars) and then it will reachin in New York the same day but will be held there because Saturday and Sunday are closed in America. Now on Monday morning they will move it but in Amercia, Banks open on Monday when the days is over in Pakistan. So it will reach to Pakistan some time on Tuesdaay and through State Bank it will reach to the Head Office of concerned Bank and from there it will be transfered to the concerned Br. of that particular Bank. So it will reach late on Tuesday or on Wednesday.

Now you must realize that a payments which was sent by a buyer from Saudi Arabia on wednesday is reaching to the destination on next wednesday i.e. after one week.

Not only this, approximately a sum of $ 50 per transaction will be deducted by the American Bank who is transmitting this payment from America. Is this not a Jagga Tax which Americans have awarded to their Baanks through this restriction imposed on the countries like Pakistan not to Export in their own currency ?

On the other hand if we remit the same in Pak Currency from Saudi Arabia or Dubai it will reach next Monring, saving 6 days of our exporters and nothing will be deducted in transit as bank charges.

So now our Govt. have to lift this restriction of not to Export in Pak Currency.

:jazak: Very useful answer. Thanks