Strengthen economic ties: Pakistan proposes ‘currency swap’ to Iran

Discussion in 'Pakistan' started by ejazr, Jul 17, 2011.

  1. ejazr

    ejazr Stars and Ambassadors Stars and Ambassadors

    Oct 8, 2009
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    Hyderabad and Sydney
    Strengthen economic ties: Pakistan proposes ‘currency swap’ to Iran – The Express Tribune


    President Asif Ali Zardari on Saturday proposed a currency swap agreement with Iran to strengthen trade and economic ties between the two countries. He said Pakistan was already in a dialogue process with Turkey, Sri Lanka and China for currency swap arrangements.

    President Zardari made this proposal during his meeting with his Iranian counterpart Mahmoud Ahmedinejad on Saturday, as he arrived in Tehran on a day-long trip. Delegation level talks took place followed by a meeting between the two presidents. Interior Minister Rehman Malik, Minister for Water and Power Naveed Qamar, Minister for Petroleum Dr Asim Hussain and the president’s spokesman were part of the delegation.

    Zardari proposed to the Iranian government the creation of an ‘Integrated Border Management Regime’, which he said would help counter extremism and militancy.

    He said that a trilateral initiative involving Pakistan, Afghanistan and Iran would help counter illegal human and drug trafficking.

    Enhancing economic ties

    President Zardari said the trade volume between the two countries should be increased from $1 billion to $4 billion in the next few years. He proposed a ‘free trade agreement’ between the two countries. Energy sector cooperation was also discussed.

    Constructive role in Afghanistan

    President Zardari said Iran and Pakistan possessed the potential of taking up joint economic projects in Afghanistan, especially those related to building infrastructure. He said Pakistan supported the national reconciliation process initiated by Afghan President Hamid Karzai for peace in Afghanistan, while adding that Afghanistan should not again become a play-field for proxy wars after the withdrawal of Nato forces.

    I had said earlier that it looks like Pakistan and Iran are coming closer and this seems like another step in that direction if the currency swap comes to fruition.
  3. pankaj nema

    pankaj nema Senior Member Senior Member

    Oct 1, 2009
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    Who wants Pakistani junk currency , If Pakistan wants to pay in yuan first Pakistan will have to buy Yuan from China

    What does Pakistan bring to the table on economic matters

    Iran though under sanctions is a far stronger economy than Pakistan

    Pakistani economy is totally dependent on handouts

    Recently for India ; when there was a problem with Iran regarding Payment for Iranian crude oil then India proposed Rupee Payments

    Iran accepted only 20 Percent of the 12 billion dollar annual payments in rupees and some part in Turkish Lira and remaining will be financed by UAE ; UAE being in turn to be paid by India

    Pakistanis just talk too much

    Whether it is Turkey to Pakistan railway lines or Pak Iran crude pipeline every thing is on paper
    Those IDIOTS dont have money to even repay their debts
    Last edited: Jul 17, 2011
  4. Tshering22

    Tshering22 Sikkimese Saber Senior Member

    Aug 20, 2010
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    Gangtok, Sikkim, India
    Iranian Tuman is worse than Pakistani rupees. :lol: Just check out its market value in international currency market.

    As a customer asking contracts on soft loans or aid money to Iranian companies.

    Of course, the production, human development, education quality, emphasis on economy is much much higher than Pakistan and to some extent even India. This is partly because Iran has one thing the world needs---OIL.

    Looking at which, Pakistan seems to have proposed a currency swap since we can afford to dilly dally even when waiting to solve bilateral issues-- they can't.

    Iran is so undecided and moody in politics.

    A trait that they acquired on 14 August 1947.

    :lol:"That's an evil Hindoo and dajjal Jewish conspiracy. You Indians should shut up and check the 90% below poverty line population you have and your own 200 separatist factions. Pakistan has much better quality of life than any Indian. Pakistanis are fairer, better looking, superior and proud Muslims. They don't need dirty skinny black Indian advice. :rotfl:
  5. Yusuf

    Yusuf GUARDIAN Administrator

    Mar 24, 2009
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    Iranian currency is exchanged so low because of the international sanctions. Internally Iranian economy is quite robust. CIA has for years tried to manipulate Irans Rial to screw up it's economy. Quite like what Pakistan attempts with India with fake currency.

    The Iranian question for me has more to do with Shia Sunni divide and to prove that Iranians are the "protectors" of Islam. Why would a Shia, (ethnically composed of Persians and Azeries) Iran be even remotely be bothered about "Sunni Arab" Palestinians? It's a bloody power game. Iranians are not fools for sure though they come across as insane. There is a method to their madness.

    LETHALFORCE Moderator Moderator

    Feb 16, 2009
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    There are 2 problems with this scheme
    1)Pakistan does not have currency reserves that can be used for SWAPS -60 billion dollars in DEBT
    2)Iran has most reserves in EUROS they have moved almost completely away from the dollar.

    How are SWAPS possible when both have different currency holdings??? And one side really has no holdings??

    This is just to piss USA off nothing more.
  7. thakur_ritesh

    thakur_ritesh Administrator Administrator

    Feb 19, 2009
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    Land of the GODS - "Dev Bhomi".
    iran has had a past which most certainly makes them aspire of having a similar future or something on similar lines, sometime in the future, at some point, and they believe if they strive for that, they are bound to get there and so the persians have a superior feel over the arabs, then of course the sunni-shia mismatch sinks in.

    iran is more than just an oil based economy, even today after being heavily sanctioned there is no stopping their economy and they have a good self sustaining module in place, be it science and technology, the domestic auto industry, agriculture, etc and they have it better than the rest in the region and even after all the attempts by the arabs and west to sabotage their efforts they have not faltered. when compared with the gcc (no dubai)/ arab world they even today come on tops hands down, lets put it this way, you take out oil from the gcc and make iran sanction free and take their oil out, you will have a galloping iranian economy and one of the best performers globally, can that even remotely be said about the gcc (including the two new member state additions), that's anyone's guess.

    of interest to see will be how do iran and turkey relations evolve as turkey again seems to believe that they too have a rightful place to head the region, which could well become a reason for tussle between the two in times to come. infact the west has been promoting the turkish model of governance actively to the muslim world, and had the objections not been raised by the arabs and more particularly the gcc, we would have by now seen a significant sea change in the otherwise monarchic arab/gcc world and had that happened there was every likely hood of turkey having played a significant role, most definitely with the active support of the west, with the power of balance shifting to the turks and this in turn would have made iran pretty nervous as they would have further felt marginalised with the emergence of a new challenger.

    this is a very interesting space (iran-turkey-gcc) to watch out for.

    the pak-iran equation is a unique one, where the pakistan for the first time (read WoT) finds itself confronting the US than act as a client state to further the US/west interests in the region and this grieving in turn goes in sync with the grievance of a sanctioned iran and so the two find a common cause, but this hurt has grown profound only after musharraf's exit, but then prior to his exist there were not many drone attacks happening in pakistan either because bush would not go hard on the paks, unlike obama who comes across better off. with ksa pretty much batting for the US interests, the nervousness felt on part of pakistan has pushed this relationship on the edge, and active support to AQ has again not helped the matters for the paks and so pakistan with each passing day finds itself moving further away from its traditional allies.

    then there is also the shia angle which was on play from day one that the ppp took over. the ppp leadership doesnt feel too comforting with the ksa/gcc but have had a cordial relationship with uae/iran from the day they have entered the office, in fact the pak pres and pm are seen more often in these two countires and in china than anywhere else in the world.

    the interesting thing here is, no matter how hard the paks try there is a very remote chance they will succeed. lets go back in history, and we will find none of the pakistanis during the freedom struggle ever took a confrontion with the brits, never was a chance they made it to the jails, on the contrary they would be more than willing to adjust to the concerns of the brits and so it remains even today. even as they look to confront the US/west, they look to china as a replacement that will fill the void left in case US/west were to make an exist in that space and client states with slave mentality were never meant to prosper.

    anything to suggest or support that?

    from what i recall, reading quite sometime back, it was iran which first made the proposal of trade in indian rupee but fearing manipulation of the currency in the international market by the vested interests, india backed out, an account that was put up by an indian economist as more less an unspoken official version. our imports from iran are around 11billion usd of the 12+billions of dollars of trade that happens between the two countries, and as such we are still away from full convertibility.

    there is a limit to which the indian rupee could have been used for this trade and the 20% figure is pretty much understandable from the economics of it and we have a sustainable model in place.
  8. debasree

    debasree Regular Member

    Feb 7, 2011
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    Calcutta, India, India
    one rouge is courting other ,they find a simmilarity in each other.its bound to be happen.

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