India transacted with the United Arab Emirates (UAE) in the Indian currency for the purchase of oil, marking a key step toward elevating the Rupee as a trade instrument on the global market and dethroning the Dollar.
In this historic deal, Indian Oil Corp. used Indian Rupees rather than US Dollars to buy one million barrels of oil from the Abu Dhabi National Oil Company.
This action followed another noteworthy one in which a UAE gold exporter traded 25 kg of gold for around Rs 12.8 crore ($1.54 million) with an Indian buyer in a similar currency-to-currency transaction.
An agreement that opens the door for the exchange of Indian rupees was struck earlier this year by New Delhi and Malaysia.
According to experts, India may increase its trade with South Asian nations like Bangladesh and Sri Lanka in rupees in the near future because these nations are experiencing a dollar scarcity.
An agreement that opens the door for the exchange of Indian rupees was struck earlier this year by New Delhi and Malaysia.
According to experts, India may increase its trade with South Asian nations like Bangladesh and Sri Lanka in rupees in the near future because these nations are experiencing a dollar scarcity.
The impact of the dollar is felt throughout the developing world as a whole; many nations are tired of America’s hegemony over the world financial system.
According to reports, this week’s meeting in Johannesburg, South Africa, between members of the BRICS bloc—Brazil, Russia, India, China, and South Africa—and other rising economies will focus on finding a replacement for the US dollar.
South Africa’s Naledi Pandor stated the New Development Bank of the BRICS will look for alternate trading systems at a meeting of the group’s foreign ministers in June.
Rapid fluctuations are a significant problem for developing economies when dealing with the Dollar.
