India's Attempt to Pay for Oil in Rupees Fails
The Indian Oil Ministry recently admitted that its efforts to pay for oil with rupees have been unsuccessful due to concerns from suppliers about repatriating funds. The goal of this initiative was to reduce India's reliance on the U.S. dollar for cross-border transactions.
High Transactional Costs of Converting Rupees
The Indian oil ministry informed a parliamentary standing committee that the country's plan to have oil producers accept payment in the local currency has not been successful. One of the reasons cited by the ministry is the perceived high cost of converting rupees to other major currencies.
The ministry also stated that oil suppliers, including the United Arab Emirates' ADNOC, have expressed concerns about repatriating their earnings. According to a report in the Economic Times, some oil producers believe that the weakness of the rupee compared to the U.S. dollar makes it an unfavorable payment method.
The oil ministry said, "During FY 2022-23, no crude oil imports by oil PSUs were settled in the Indian rupee. Crude oil suppliers, including UAE's ADNOC, continue to express their concern on the repatriation of funds in the preferred currency and also highlighted high transactional costs associated with conversion of funds along with exchange fluctuation risks."
The report also revealed that the Indian Oil Company (IOC) paid a premium above the prevailing price, indicating the extent of India's failure in de-dollarization. Additionally, the country's oil ministry mentioned that the Indian conglomerate Reliance Industries Ltd and oil public sector undertakings (PSUs) have not yet reached any agreement to pay in rupees with any supplier.
Partial Success in Non-Oil Trade Transactions
Although India's attempt to pay for oil with rupees has not been successful, its de-dollarization policy has achieved some success in certain non-oil trade transactions.
India's regional rival, China, has already established agreements with some oil-producing countries to settle payments in its currency, the yuan.
What are your thoughts on this story? Let us know in the comments section below.
Frequently Asked Questions
How much do gold IRA fees cost?
An individual retirement account’s average annual fee (IRA) costs $1,000. There are many types and types of IRAs. These include traditional, Roth or SEP-IRAs as well as SIMPLE IRAs. Each type has their own set of rules. If you don’t have tax-deferred investments, then earnings may need to be taxed. You must also consider how long you want to hold onto the money. You will save money if you intend to keep your funds longer than a Roth IRA.
You can contribute up to $5500 per year to a traditional IRA (or $6500 if you are 50 or older). A Roth IRA lets you contribute unlimited amounts each year. The difference is simple. With a traditional IRA you can withdraw the money when you retire and pay no taxes. On the other hand, you’ll owe taxes on any withdrawals made from a Roth IRA.
Are precious metal IRAs a wise investment?
How willing you are to risk your IRA account losing value will decide the answer. These are good if you have $10,000 of cash and don’t expect them grow quickly. These might not be the best options if you’re looking to invest in assets that have the potential to rise in value (gold) and plan to save for retirement for many decades. You may also have to pay fees, which can reduce your gains.
What type of IRA is best?
When choosing an IRA, it is important to choose one that suits your lifestyle and goals. You need to decide whether you want to maximize tax deduction on your contributions, minimize taxes now but pay penalties later, and if you just want to avoid taxes.
If you have little money to invest, the Roth option might make sense. If you plan to continue working beyond age 59 1/2, and pay income taxes on any account withdrawals, the Roth option may be a good choice.
If you plan to retire early, the traditional IRA might make more sense because you’ll likely owe taxes on the earnings of those funds. If you are going to be working beyond 65 years old, the traditional IRA may make more sense because you can withdraw all or part of your earnings without having to pay taxes.
How much of your IRA should include precious metals?
Protecting yourself from inflation is best done by investing in precious metals such silver and gold. This is not only an investment for retirement, but it can also help you prepare for any economic downturn.
Although silver and gold prices have increased in recent years, they can still be considered safe investments as they don’t fluctuate nearly as much as stocks. Plus, there’s always a demand for these materials.
Predictable and stable prices for gold and silver are common. They are most likely to rise when the economy grows and fall during recessions. This makes them excellent money-savers, and long-term investment options.
10% of your total portfolio should be invested in precious metals. If you want to diversify even further your portfolio, that percentage could rise.
What are the 3 types of IRA?
There are three basic types for IRAs. Each type has its benefits and drawbacks. Below, we’ll discuss each one.
Traditional Individual Retirement Account (IRA).
A traditional IRA allows you contribute pretax money to an account which can be used to defer taxes and earn interest. Withdrawals from this account are exempted from tax once you have retired.
Roth IRA
Roth IRAs allow after-tax dollars to go into an account. Earnings are exempt from tax. Withdrawals from the account are also tax-free when you withdraw funds for retirement purposes.
SEP IRA
This is similar in structure to a Roth IRA. However, employees will need to make additional contributions. These extra contributions are subject to income tax but any earnings will grow tax-deferred again. When you leave the company the whole amount may be converted to a Roth IRA.
Is a gold IRA worth interest?
It all depends upon how much money you invest. If you have $100,000 to spare, then yes. If your assets are less than $100,000, it is no.
The amount of money you put into an IRA determines whether or not it earns interest.
You should consider opening a regular brokerage account instead if you put in more than $100,000 per year for retirement savings.
You will likely earn more interest there, but you’ll also be exposed to riskier investments. If the stock market crashes, you don’t want all your money to be lost.
An IRA might be more advantageous if you are able to contribute only $100,000 per year. At least until the market starts growing again.
How much should precious metals be included in your portfolio?
The best way to avoid inflation is to invest in physical gold. Because you are buying into the future value of precious metals and not the current price, when you invest in them, it is a way to protect yourself from inflation. As prices rise, so does your investment’s value.
Any gains you make from investments that you hold onto for at least five year will be tax-free. Capital gains taxes will apply if you sell the investments within this time period. If you want to learn more about how to buy gold coins, visit our website.
Statistics
- SEP-IRA”Simplified employee pension” For self-employed people like independent contractors, freelancers, and small-business ownersSame tax rules as traditional IRASEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less4. (sltrib.com)
- Depending on your financial situation, most experts recommend you invest no more than 5% to 10% of your retirement funds in precious metals. (forbes.com)
- Silver must be 99.9% pure • (forbes.com)
- The maximum yearly contribution to an individual’s IRAs is currently $6,000 ($7,000 for those 50 years or older), or 100% of earned income, whichever is less. (monex.com)
External Links
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kitco.com
en.wikipedia.org
forbes.com
How To
Things to Remember: Best Precious Metals Ira, 2022
Precious Metals Ira ranks high among investors as one of their most popular investment options. This article will provide information on how to understand the appeal of precious metals ira and make sound investment decisions.
These assets are renowned for their long-term potential growth. If we look at historical data, gold prices show incredible returns. Over the past 200-years, gold prices have gone from $20 per ounce up to $1900 per ounce. Comparatively, the S&P 500 Index has only grown by approximately 50%.
During times of economic uncertainty, people consider gold a safety net. People tend to sell stocks when the stock market is in trouble and shift into gold for safety. Inflation is also a hedge, so gold can be used as a security measure. Many economists believe that there will always be some degree of inflation. Accordingly, many economists believe that inflation will always be present. Therefore, physical gold can be considered a way for you to safeguard your savings from future price rises.
But before buying any precious metal like silver, gold, platinum, or palladium, there are certain things to consider. First, determine whether you are interested in investing in bullion bar coins or coins. Bullion bars are usually bought in large quantities (like 100 ounces) and stored away until needed. The coins are smaller versions than bullion bars and can be used to purchase small quantities of bullion.
You should also consider where your precious metals will be stored. Certain countries are more secure than others. You might find it more sensible to store your precious materials overseas if you are a resident of the US. If you are thinking of storing your precious metals in Switzerland, however, you might be wondering why.
Finally, you need to decide whether you want precious metals investments directly or through “precious Metals Exchange-Traded Funds” (ETFs). ETFs can be financial instruments that track different commodities’ performance, such as gold. You can use these to get exposure to precious metals without having to own them.
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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
