Thursday, January 5

Indian rupee fast emerging as currency to settle global trade debts

I seem to recall asking last month whether the Indian rupee -- trade in the rupee -- is a black swan event. From Firstpost today:

India’s Neighbours Ready to Embrace the Rupee | Indian Rupee Goes Global - YouTube - 3:42 minutes

Introduction to the report: 

De-dollarization became the buzzword after Russia became the first overseas country to settle trade with India in rupees. After all, it's the US dollar that currently exercises hegemony in global trade. And de-dollarisation, effectively, seeks to counter this precise overreliance. Moscow junked the dollar and brought smaller nations like Tajikistan, Cuba, and Sudan on board as well. Now, it's India's immediate neighbors that are eyeing using the Indian rupee for trade, boosting New Delhi's Neighborhood First policy. And this is no mean feat. As a result, the Indian rupee is fast emerging as a plausible alternative to settling global trade. [...]



Himanshu said...

hostile neighbors like China and Pakistan need to become friendly to India first

Pundita said...

Maybe never friends but they need to get on better terms. I guess you know that what has been going on in Pakistan is an absolute disaster. India could help but the old guard in the Pak military is still resistant, still turning to the Middle East kingdoms for help. Things will have to get a lot worse in Pak before they turn to India.