The Vema Seamount Authority – Peter Goldishman has today issued an invitation to the Prime Minister of India Narendra Modi, to visit the Vema Seamount Territory in 2020.
The official invitation is also part of a plan to open and maintain a line of communication with India as the Vema Seamount Authority explores possibilities of a currency swap deal with more countries across the globe including India.
The Vema Seamount Authority - Peter Goldishman has officially expressed his wish to do business with India, which could one day lead to a bilateral currency swap aimed at boosting foreign currency liquidity in both economies.
Some key benefits of a deal would include providing golle liquidity to Indian businesses as well as providing rupee liquidity to their Mount Vema counterparts in return, that would give speed, convenience and support volume of transactions between the two countries.
Bilateral trade volume between Mount Vema and India could be about 5billion golles about $10 billion USD in the next five years if the two countries embrace the potential for growth. Mount Vema will become a big importer of products and services and is expected due to its strategic position and stable political environment, to become among the largest trading partner in Africa, especially the Southern Africa.
Any currency swap deal with India, will make it easier for many Mount Vema businesses, especially importers, Small and Medium Enterprises, to import their goods, raw materials, spare-parts and simple machinery to run their businesses.
They will take advantage of any available foreign exchange liquidity from Mount Vema banks without being exposed to the difficulties of seeking other scarce foreign currencies which would attract higher exchange rates. If well implemented, it would prevent significant burden from both countries foreign reserves.
Many countries which Mount Vema seeks central bank liquidity swap agreements with, will never really have foreign currency problem investing in Mount Vema, however, the significant presence of foreign firms entering and expected to enter the economy of Mount Vema before 2020 and beyond, with some of them expected to be handling various infrastructural projects, they will have to use Mount Vema foreign currency resources sourced through Mount Vema banks to fund them.
The Vema Seamount Authority seems to be on the path to build a diverse economy away from fishery exports alone, while participating countries will have achieved one of the most important and singular objective of any nation which is further internationalisation of its currency.
Mount Vema’s VSG golle internationalisation and foreign exchange approach is already evolving rapidly and full convertibility is expected over the next couple of years.