NEW DELHI, July 27. /TASS/. The India International Bullion Exchange (IIBX) to be opened on Friday, July 29, may soon challenge exchanges in London, New York and Singapore, financial counselor of the Russian Embassy in India Mikhail Glazachev told TASS.
"India is the second (after China) gold consumer worldwide. That’s why the decision to create a specialized trading platform on the territory of the country, which will open on Friday, appears fairly natural. According to the representation of professional traders, the India International Bullion Exchange can become a decent competitor to peer markets in London, New York and Singapore, offering a broad range of services at lower prices," Glazachev said.
"The launch of such exchange in India could not have a better time in current conditions for Russian exporters of precious metals," the diplomat said. According to Indian statistics, gold bullions supplied from Russia to India totaled $238.6 mln or 40% above the last-year figure during 11 months of the financial year of 2021-2022 [from April 1 to March 31 in India - TASS].
"I expect participation of domestic companies in organized trading will lead to times’ growth of Russian gold turnover on the Indian market. Further, the exchange is located on the territory of the GIFT City special economic zone, which provides a series of fiscal and customs duties," the expert said.
There is a need at present to create an alternative to the London Bullion Market Association (LBMA), which will not follow political motives of individual members when making decisions, the diplomat said. LBMA canceled the Good Delivery certificate for all Russian refineries this March in the light of sanctions against Moscow. "Appearance of such platform would promote more transparent international pricing of precious metals, strengthening of supply chains and creating common rules of the game," Glazachev added.