New Delhi has proposed using the rupee in foreign trade transactions as part of its new policy. Indian authorities plan to use the scheme when doing business with countries facing a dollar shortage or currency crisis, Press TV reported.
India has decided to offer the rupee as a trade currency alternative to the US dollar. This is all in line with its new “dynamic and flexible” foreign trade policy, aiming at de-dollarization, Press TV writes.
According to Indian authorities, the rupee will be used when doing business with countries that are facing a dollar shortage or currency crisis. For instance, New Delhi will be able to trade with Malaysia under such a scheme. It is also being considered by Bangladesh.
In the next five years one of India’s main objectives is to “encourage” internationalisation of the rupee. In addition, the country is looking to increase exports of goods and services to $2 trillion by 2030, said Commerce and Industry Minister Piyush Goyal.
India already trades in rupees with Russia, Mauritius, Iran and Sri Lanka. For Moscow, trading with an alternative to the dollar has become the “centrepiece of the new plan”, while New Delhi aims to ensure the global status of its currency and allow it to be used for international trade settlements, argues Press TV.
The announcement came amid official efforts by New Delhi to protect its foreign trade from the impact of the Ukraine crisis. Since Russia’s economy came under Western sanctions, it has become extremely difficult to use the dollar, so countries have started opting for alternative currencies to break US hegemony in international trade, the channel explains.
Similarly, Iran abandoned the dollar last year and began trading with Russia in national currencies. This has made it easier for the Islamic republic to bypass the American-dominated global financial system.
The BRICS countries, which will soon include Iran and Saudi Arabia, are working on a new form of currency to destroy US hegemony. They intend to present their ideas at the organisation’s upcoming summit in South Africa, Press TV concludes.
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