Can’t we all just get along?
India’s Attempt to Ditch US Dollars Fails
In an unrealistically ambitious move, BRICS member India sought to convince 22 countries to embrace the Rupee for international trade, sidelining the US dollar.
Despite initial agreements, the plan encounters setbacks as BRICS+ countries hesitate to reserve the declining Rupee.
Rupee’s Global Decline
India’s struggle intensifies as the Rupee loses strength against major currencies. With no demand in the global market, the default payment options shift towards the US dollar, Euro, Pound, Chinese Yuan, Japanese Yen, or UAE’s Dirhams, rendering the idea of abandoning the US dollar implausible.
Russia’s Stance Adds Complexity
A reality check from BRICS counterpart Russia further complicates matters. Russia, insisting on the US dollar and Chinese Yuan for settlements, pauses oil trade with India due to Rupee payment issues. The Indian government’s reluctance to use the Chinese Yuan leads to a standoff, impacting crude oil shipments.
Payment Dilemma Halts Oil Trade
The Indian Oil Corp faces a significant delay in a large shipment of Russian Sokol crude oil, highlighting the consequences of the payment predicament. With Russia standing firm on its preference for the US dollar or Chinese Yuan, the situation emphasizes the challenges BRICS members face in reaching a consensus on member currencies for trade.
Contributing article: https://watcher.guru/news/brics-india-gets-reality-check-ditching-us-dollar-impossible
