India is among the most dollarised countries as far as
invoicing is concerned, and by all these measures of internationalisation,
the dollar is largely ahead of other currencies with euro as a distant
second, Professor Hélène Rey, Lord Bagri Professor of Economics, London
Business School, said.
Ms. Rey was speaking at the Export-Import (EXIM) Bank of
India’s 35th Commencement Day Annual Lecture in Mumbai on ‘financial
globalisation and international financial markets’.
“One can also see the U.S. as an insurer, since the value of
its external dollar liabilities such as Treasury bills and U.S. government
bonds held by the rest of the world tend to appreciate in bad times, thereby
insuring the people holding them,” she said.
As a result, the U.S. gets seigniorage as people from
different countries use dollars, she said, adding that India was one of the
most dollarised countries in the world, following Brazil, Pakistan and
Indonesia, in the share of imports and exports invoiced in dollars.
Ms. Rey said that according to a survey by the European
Central Bank, the dollar dominated 62.2% international debt, 56.3%
international loan and 62.7% global exchange reserves, whereas the euro had
acquired much less global market.
“The dollar is becoming more unstable over time as the
relative size of the U.S. shrinks in the world economy while the stock of
dollar liabilities in the rest of the world keep growing,” she added.
India has welcomed the deal between the US and the Taliban
in Afghanistan. External Affairs Ministry Spokesperson Raveesh Kumar said,
New Delhi support all opportunities that can bring peace, security and
stability in Afghanistan and end violence, cut ties with international
terrorism and lead to a lasting political settlement through an Afghan-led,
Afghan-owned and Afghan controlled process.
He said India noted that the entire political spectrum in
Afghanistan, including the Government, the democratic polity and civil
society, has welcomed the opportunity and hoped for peace and stability
generated by these agreements.
Mr Kumar said India will continue to extend all support to
the Government and people of Afghanistan in realising their aspirations for
a peaceful, democratic and prosperous future where the interest of all
sections of Afghan society are protected.
US and Taliban signed a peace deal in Doha yesterday. India
attended the historic event as Observer. The agreement will pave the way for
phased withdrawal of American troops from Afghanistan.
As part of the deal, the Taliban are required to initiate a
dialogue with the Afghan government and other civil society and political
groups for a permanent ceasefire and power-sharing in post-war Afghanistan.