China and India do not have high liquidity in the market due to comparatively stringent currency controls. Currency outflow, interest rates,inflation rates,currency trading/hedging, base lending rates, income tax, corporate tax, import tariffs, etc are heavily regulated to protect their respective economies. Yes, they may have large trade surpluses and large consumer bases but their vaults are oveflowing with US Dollars, the US being a major trading partner for both countries.
However, this scenario cannot be compared to the GCCs. Venezuela and Libya are among the few OPEC couintries that are buckling the trend of trading their oil in US Dollars with encouring results. However, it is not the case with GCC countries for various reasons.
China and India do not have high liquidity in the market due to comparatively stringent currency controls. Currency outflow, interest rates,inflation rates,currency trading/hedging, base lending rates, income tax, corporate tax, import tariffs, etc are heavily regulated to protect their respective economies. Yes, they may have large trade surpluses and large consumer bases but their vaults are oveflowing with US Dollars, the US being a major trading partner for both countries.
However, this scenario cannot be compared to the GCCs. Venezuela and Libya are among the few OPEC couintries that are buckling the trend of trading their oil in US Dollars with encouring results. However, it is not the case with GCC countries for various reasons.