Failed Attempt to Pay with Rupees
The Indian Oil Ministry has recently admitted that their efforts to pay for oil with rupees have been unsuccessful. Suppliers are hesitant to accept payment in the local currency due to concerns about repatriating their funds. The goal of this initiative was to reduce India’s reliance on the U.S. dollar for cross-border transactions.
Challenges with Converting Rupees
According to the Indian oil ministry, one of the main reasons for the failure of the policy is the perceived high cost of converting rupees to other major currencies. Oil suppliers, including ADNOC from the United Arab Emirates, have also expressed concerns about repatriating their revenues.
An article in the Economic Times states that some oil producers believe the weakness of the rupee compared to the U.S. dollar makes it an unfavorable payment method. The oil ministry further added that crude oil imports by oil PSUs were not settled in Indian rupees during the fiscal year 2022-23. This highlights the extent of India's de-dollarization failure.
No Agreements with Suppliers
The report also reveals that the Indian Oil Company (IOC) paid a premium above the prevailing price, indicating the lack of agreements between Indian conglomerate Reliance Industries Ltd, oil public sector undertakings (PSUs), and suppliers to pay in rupees.
Partial Success in Non-Oil Trade
Since July 11, 2022, the Reserve Bank of India (RBI) has allowed oil importers to pay with rupees and exporters to be paid in rupees. While India's goal of paying for oil with rupees has not been achieved, their de-dollarization policy has seen some success in non-oil trade transactions.
What are your thoughts on this story? Let us know in the comments section below.
Frequently Asked Questions
What are the pros & cons of a Gold IRA?
An Individual Retirement account (IRA) is a better option than regular savings accounts in that interest earned is exempted from tax. An IRA is a good choice for those who want a way to save some money but don’t want the tax. However, there are disadvantages to this type investment.
To give an example, if your IRA is withdrawn too often, you can lose all your accumulated funds. The IRS may prevent you from taking out your IRA funds until you reach 59 1/2. You will likely have to pay a penalty fee if you withdraw funds from an IRA.
A disadvantage to managing your IRA is the fact that fees must be paid. Many banks charge between 0.5%-2.0% per year. Other providers charge monthly management costs ranging from $10-50.
If you prefer your money to be kept out of a bank, then you will need insurance. Most insurers require you to own a minimum amount of gold before making a claim. You might be required to buy insurance that covers losses up to $500,000.
If you choose to go with a gold IRA, you’ll need to determine how much gold you want to use. You may be limited in the amount of gold you can have by some providers. Others allow you the freedom to choose your own weight.
It is also up to you to decide whether you want to purchase physical gold or futures. Physical gold is more expensive than gold futures contracts. Futures contracts offer flexibility for buying gold. They allow you to set up a contract with a specific expiration date.
You also need to decide the type and level of insurance coverage you want. The standard policy doesn’t include theft protection or loss due to fire, flood, or earthquake. The policy does not cover natural disasters. If you live near a high-risk region, you might want to consider additional coverage.
Insurance is not enough. You also need to think about the cost of gold storage. Insurance won’t cover storage costs. In addition, most banks charge around $25-$40 per month for safekeeping.
Before you can open a gold IRA you need to contact a qualified Custodian. A custodian keeps track of your investments and ensures that you comply with federal regulations. Custodians cannot sell your assets. Instead, they must retain them for as long and as you require.
Once you have chosen the right type of IRA to suit your needs, it is time to fill out paperwork defining your goals. You should also include information about your desired investments, such as stocks or bonds, mutual funds, real estate, and mutual funds. It is also important to specify how much money you will invest each month.
You will need to fill out the forms and send them to your chosen provider together with a check for small deposits. After reviewing your application, the company will send you a confirmation mail.
If you are thinking of opening a gold IRA for retirement, a financial professional is a great idea. A financial planner can help you decide the type of IRA that is right for your needs. They can help you find cheaper insurance options to lower your costs.
What is the cost of gold IRA fees
$6 per month is the Individual Retirement Account Fee (IRA). This includes account maintenance and any investment costs.
If you want to diversify, you may be required to pay extra fees. These fees vary depending on what type of IRA you choose. Some companies offer free checking, but charge monthly fees for IRAs.
Many providers also charge annual management fees. These fees range from 0% to 1%. The average rate is.25% per year. However, these rates are typically waived if you use a broker like TD Ameritrade.
How much should you have of gold in your portfolio
The amount you make will depend on the amount of capital you have. A small investment of $5k-10k would be a great option if you are looking to start small. As you grow, it is possible to rent desks or office space. You don’t need to worry about paying rent every month. Only one month’s rent is required.
It is also important to decide what kind of business you want to run. In my case, I run a website-creation company. Our clients pay us between $1000-2000/month and depending on their order. So if you do this kind of thing, you need to consider how much income you expect from each client.
You won’t get a monthly paycheck if you work freelance. This is because freelancers are paid. This means that you may only be paid once every six months.
Decide what kind of income do you want before you calculate how much gold is needed.
I recommend starting with $1k-$2k in gold and working my way up.
What is the Performance of Gold as an Investment?
The supply and demand for gold affect the price of gold. It is also affected negatively by interest rates.
Due to the limited supply of gold, prices for gold are highly volatile. There is also a risk in owning gold, as you must store it somewhere.
Is gold a good IRA investment?
Anyone who is looking to save money can make gold an excellent investment. You can also diversify your portfolio by investing in gold. But gold has more to it than meets the eyes.
It has been used throughout history as currency and it is still a very popular method of payment. It is often called “the most ancient currency in the universe.”
But unlike paper currencies, which governments create, gold is mined out of the earth. It’s hard to find and very rare, making it extremely valuable.
The price of gold fluctuates based on supply and demand. People tend to spend more when the economy is healthy, which means that fewer people are able to mine gold. The result is that gold’s value increases.
On the flip side, when the economy slows down, people hoard cash instead of spending it. This results in more gold being produced, which drives down its value.
It is this reason that gold investing makes sense for businesses and individuals. If you make an investment in gold, you can reap the economic benefits whenever the economy is growing.
Additionally, you’ll earn interest on your investments which will help you grow your wealth. You won’t lose your money if gold prices drop.
Statistics
- If you take distributions before hitting 59.5, you’ll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
External Links
finance.yahoo.com
forbes.com
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China’s Evergrande Crisis – Forbes Advisor
bbb.org
law.cornell.edu
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement accounts
How To
Guidelines for Gold Roth IRA
Starting early is the best way to save for retirement. As soon as you become eligible, which is usually around age 50, start saving and keep it up throughout your career. You must contribute enough each year to ensure that you have adequate growth.
You may also wish to take advantage of tax-free investments such as a SIMPLE IRA, SEP IRA, and traditional 401(k). These savings vehicles enable you to make contributions while not paying any taxes on the earnings, until they are withdrawn. This makes them great options for people who don’t have access to employer matching funds.
It is important to save consistently over time. You will lose any potential tax advantages if you don’t contribute enough.
—————————————————————————————————————————————————————————————–
By: Terence Zimwara
Title: India’s De-Dollarization Push Flounders as Oil Suppliers Cite Rupee Repatriation Concerns
Sourced From: news.bitcoin.com/indias-de-dollarization-push-flounders-as-oil-suppliers-cite-rupee-repatriation-concerns/
Published Date: Thu, 28 Dec 2023 10:30:25 +0000
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