India is now offering its own currency for use in international trading among nations experiencing a shortage of U.S. dollars.
According to a report by the Gateway Pundit, the South Asian nation expressed readiness to trade in Indian rupees and has found several other nations willing to do so. The use of the rupee would definitely be advantageous for New Delhi, which predicts its exports to rise from about $770 billion to some $2 trillion.
Bhagwat Karad, minister of state for the Indian Ministry of Finance, said the Reserve Bank of India – the country’s central bank – had approved the opening of special vostro rupee accounts (SVRAs) of correspondent banks from 18 countries. These countries include Botswana, Fiji, Germany, Guyana, Israel, Kenya, Malaysia, Mauritius, Myanmar, New Zealand, Oman, Russia, Seychelles, Singapore, Sri Lanka, Tanzania, Uganda and the United Kingdom.
Indian Commerce Secretary Sunil Barthwal defended the decision to use the Indian rupee for international trade. He told news reporters at a press conference in the capital that aside from boosting India’s exports, nations with a shortage of U.S. dollars could be rendered “disaster-proof.”
The Gateway Pundit also noted that other regions are trying to step away from reliance on the dollar. Leading the charge is the BRICS group consisting of Brazil, Russia, India, China and South Africa. The group seeks to establish the 5R reserve currency basket made up of their respective currencies – the Brazilian real, the Russian ruble, the Indian rupee, the Chinese renminbi (another name for the yuan) and the South African rand. (Related: BRICS nations rapidly working to create common currency to counter US dollar’s global hegemony.)
Outside of BRICS, other countries have moved to wean themselves off the dollar when it comes to international trade.
Kenya signed a deal with Saudi Arabia and the United Arab Emirates to buy oil with Kenyan shillings instead of U.S. dollars. Meanwhile, the Association of Southeast Asian Nations is also mulling over if it will drop the U.S. dollar, the British pound, the Japanese yen and the euro for local currency financial settlements.
“Disastrous economic policies” lead to dollar demise
Citing a separate piece from Bloomberg, the Gateway Pundit remarked: “As a result of [U.S. President] Joe Biden’s disastrous economic policies, there are now coordinated efforts to weaken the global reliance on the U.S. dollar.”
A March 17 piece by former actor Jason Peirce in the Federalist expounded on why Biden will oversee the collapse of the U.S. dollar. He elaborated on the events that led to nations such as India ditching the dollar in favor of other currencies.
“Amid the Russia-Ukraine war, Biden slapped economic sanctions on Russia – essentially denying Russia access to dollar reserves. In this, Biden has weaponized the dollar against Russia,” wrote Peirce. But what Washington did to Moscow is not a one-off thing, he added, as the U.S. has done the same “to countries that have failed to conform to [its] foreign policy goals.”
“The problem for the U.S. is Russia and other countries are now looking for alternatives to the dollar. Sanctions coupled with the [Federal Reserve’s] massive inflation of the dollar supply … [have] shaken confidence in both the U.S. government and the dollar as the world reserve. Many countries no longer trust the U.S., and they are losing faith in the dollar as a stable medium of exchange and store of value.”
Peirce ended his article by pointing out that the U.S. has “abused the dollar’s standing as the world reserve,” and that “the Biden administration is hurtling toward ringing the death-knell for the dollar as the world’s reserve currency.
Watch Holly Seeliger as she expounds on India’s plan to use both the rupee and the ruble in trading with Russia.
(Article by Ramon Tomey republished from Citizens.news)