India Ditches US Dollar: Is THIS the Beginning of the End?

India Ditches US Dollar: Is This the Beginning of the End?

( – According to Bloomberg, India has offered its currency as a substitute for dollars to countries experiencing a shortage following the US Federal Reserve’s strongest tightening of monetary policy in decades.

Joe Biden’s poor economic policies have prompted concerted efforts to reduce the world’s dependency on the dollar.

According to Reuters, India’s new foreign trade policy became effective on April 1.

The source claimed:

“The South Asian nation is prepared to trade in rupees with nations facing a shortage of dollars so as to “disaster-proof” them and effectively boost its exports, Commerce Secretary Sunil Barthwal told a news conference in the capital, New Delhi.

The measures include industry-specific targets to reach a goal of $2 trillion in exports of merchandise and services by 2030, said Santosh Kumar Sarangi, head of the directorate-general of foreign trade (DGFT).

That represents a nearly three-fold jump from expected exports of $770 billion in financial year 2022/23, he added, despite global uncertainties that make the export scenario slightly challenging.

India is also launching a new amnesty scheme for one-time settlement of defaults on export obligations, Sarangi said.

The scheme, which aims for faster resolution of trade disputes, will run until September 2023 but will not apply to cases involving fraud investigations.

India’s new policy will also automate some trade approvals and cut charges for medium-sized and small businesses to secure some government-backed benefits.”

The Reserve Bank of India allowed the opening of 60 different special rupee vostro accounts (SVRAs) for correspondent banks from 18 other countries, according to Bhagwat Karad, India’s state minister for finance.

Botswana, Fiji, Germany, Guyana, Israel, Kenya, Malaysia, Mauritius, Myanmar, New Zealand, Oman, Russia, Seychelles, Singapore, Sri Lanka, Tanzania, Uganda, and the United Kingdom are among the nations mentioned.

According to a senior Russian official, the BRICS nations—Brazil, Russia, China, India, and South Africa—are also building their own currency, which will be unveiled at the group’s upcoming meeting in South Africa.

This is a summary of the nations that have stopped using the US currency in recent weeks:

  • To further reduce its reliance on the US currency, Saudi Arabia joins a trading alliance with China, Russia, India, Pakistan, and four Central Asian countries.
  • The first LNG gas transaction between China and France was completed in the Chinese Yuan, removing the reliance on the US currency in energy trades.
  • China and Brazil will no longer use the US currency to settle trade.
  • According to the deputy chairman of the Russian Duma, BRICS (Brazil, Russia, India, China, and South Africa) are creating a new currency.
  • Saudi Arabia and China collaborated to construct an oil refinery in China for 83.7 billion yuan ($12.2 billion).
  • Kenya signed an agreement with Saudi Arabia and the United Arab Emirates to purchase oil in Kenyan shillings rather than US dollars.
  • Kenya’s president advises people to throw away their US currency.
  • The Association of Southeast Asian Countries is considering switching to local currencies for financial settlements instead of the US dollar, euro, yen, and British pound.

Copyright 2023,