Small Exchange: India, Iran and Goldman Sachs
The week's currency news rounded up.
India will soon introduce plastic currency
The Indian government has decided to begin printing plastic currency, a trend Australia started when it switched to polymer banknotes in 1996.
India's Economic Times reports the process of procuring the materials needed has been initiated.
Plastic notes are heralded as a safer, cleaner and longer lasting alternative to paper currency.
Indians are reeling after the Prime Minister Narendra Modi withdrew all 500 and 1,000 rupee banknotes from circulation, sparking a rally in bonds and spawning money-laundering networks.
Iran is switching its national currency
IRNA news agency reports President Hassan Rouhani has moved to change the name and denomination of Iran's currency (rial) to the more commonly referred to man.
One to man would be worth 10 rials. Currently, around 3,200 rials buys US$1 at official exchange rates.
Iran's head of planning and budget organisation Mohammad Baqer Nobakht says shifting Iran's currency will help facilitate economic and trade exchanges.
The change will be discussed in parliament before being sent to the Guardian Council for final approval.
Goldman Sachs is once again betting on emerging markets
Leading investment firm Goldman Sachs is banking on the growth of three specific Asian economies.
India, Indonesia, and Philippines are the favourites, according to reports by Business Insider Australia.
"All three countries stand at a similar stage in their economic development and share four common structural tailwinds which give them the potential to be Asia’s next domestic growth stories," Goldman Sachs economist Nupur Gupta said in a research note released last week.
Rising labour forces, low private sector debt and minimal exposure to the global economy will help strengthen these nation's currencies and economic powers.
Each week Small Exchange sums up currency news from around the globe and looks at how it impacts exchange rates and options.
- Small Exchange: China’s net forex sales plummet, Oman commits to currency peg and India’s rupee expected to strengthen
- Small Exchange: China eases currency controls, crackdown on crypto-trading and India’s forex reserves remain high
- Blockchain to be used for international money transfers
- Small Exchange: South Korea to regulate cryptocurrencies, India’s demonetisation status and UK airport exchange rates fall
- Small Exchange: Philippines central bank seeks forex data, Fed boosts liquidity for foreign banks and Tunisia’s forex recovery