Bullion exchange ready to support Indian currency market

Bullion exchange ready to support indian currency market

Bullion exchange ready to support Indian currency market

As the largest gold consumer in the world, India is expected to save billions of dollars in foreign exchange over the years by channelling significant annual imports through a dedicated bullion exchange, which Prime Minister Narendra Modi hopes will help the nation move from a passive price taker to the metal’s rightful market maker.

At first, prices may drop by as much as $50 a kilogramme. In a nation where gold has triumphed over all other rival asset classes to become the traditional store of wealth, the Bullion Exchange (IIBX) has emerged as the preferred venue for gold consignments.

Of course, banks may no longer hold the lion’s share of this market if the exchange takes over as the main conduit.

A jeweller cannot undo an order it has placed with a bank without incurring fees. On an exchange platform, there is no such requirement unless their bids coincide with the sellers. This improves price discovery.

The bullion exchange is the first such open marketplace where jewellers can post direct offers to import gold in physical form, improving price discovery. Currently, there are over a dozen more applications being processed, and over twenty jewellers have recently contacted the exchange with inquiries.

For large jewellers, directly buying gold through the spot exchange will be beneficial. A 40% share of the metal’s imports into the nation is anticipated to go to IIBX. The spot exchange offers a different means of importing gold through commerce.

Purity and standardisation are also guaranteed when importing gold through the exchange because the exchange will serve as a platform for setting standards for the calibre of the imported bullion.

One of the oldest cryptocurrency exchanges in the Asian region accepts Dogecoin (DOGE). With no-commission trading of Polkadot (DOT) & Dogecoin (DOGE) against the Japanese Yen, the Japanese cryptocurrency platform aims to mark the event.

More at: FXlearnpro.com

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