Reserve

Bank

Rupee

Dream

India and China have decided to ditch the US dollar for import payments, opting for their local currencies instead. This move, confirmed by the Maldives government, is yet another significant change in international trade practices. 
Also Read: <a href="https://www.cryptopolitan.com/russia-china-stop-using-dollar-permanently/">Russia, China Stopped Using US Dollar Permanently</a> 
These BRICS members plan to strengthen their economies and reduce reliance on the dollar by using their currencies. As per the Maldives, this decision will save them nearly 50% of their $1.5 billion annual import bill from these two countries. 
<h2 class="wp-block-heading" id="india-and-china-are-determined-to-ditch-usd">India and China Are Determined to Ditch USD</h2> 
Maldives’ Economic Development Minister Mohamed Saeed mentioned that he recently met with the Indian High Commissioner Munu Mahawar. Mahawar confirmed India’s support for arranging import payments in Indian Rupee. Similarly, Saeed received a letter from China’s Commerce Ministry, assuring cooperation to facilitate payments in Yuan, following a request from President Mohamed Muizzu. 
<figure style="width: 100%" class="wp-caption alignnone">
 <img loading="lazy" decoding="async" src="https://media.cnn.com/api/v1/images/stellar/prod/230531153824-file-xi-jinping-0406.jpg?c=original" alt="India and China Eliminate US Dollar in Imports" width="1600" height="1067">
 <figcaption class="wp-caption-text">
 President Xi Jinping. Source: CNN
 </figcaption>
</figure> 
The Maldives imports goods worth $780 million from India and $720 million from China annually. In April, Saeed announced that discussions were ongoing with India and China to allow import payments in Maldivian Rufiyaa. This would reduce the pressure on the Maldives’ foreign exchange reserves. 
Also Read: <a href="https://www.cryptopolitan.com/us-dollar-weakens-against-alternative-assets/">USD Weakens Further as Alternative Assets Gain Favor</a> 
In July 2023, the Government of India declared that Maldives was among the 22 countries allowed to open Special Rupee Vostro Accounts (SRVAs) by the Reserve Bank of India. <a href="https://www.firstpost.com/world/maldives-says-india-and-china-agree-to-use-local-currencies-for-imports-13773742.html" rel="nofollow noopener" target="_blank">Speaking</a> to a state-run media outlet, Saeed stated, “Maldives imports between $600-700 million in commodities from both India and China each year. Therefore, we import around $1.4 billion to $1.5 billion in commodities annually from both markets combined.” 
<h2 class="wp-block-heading" id="brics-share-a-de-dollarization-dream">BRICS Share a De-Dollarization Dream</h2> 
Russia, another BRICS member, recently purchased $4 billion worth of arms from India using local currencies instead of the US dollar. There is a growing trend among BRICS nations to bypass the dollar in favor of their local currencies. 
Russian officials used India’s special Vostro bank accounts to settle the $4 billion arms deal payment. These accounts, overseen by the Reserve Bank of India, allow 22 countries to trade in local currencies. This arrangement supports bilateral trade and also helps Russia bypass US sanctions. 
Moreover, India is also settling its trade with Russia using local currencies through Vostro accounts. An official, speaking anonymously, <a href="https://www.firstpost.com/world/russian-firms-spend-4-billion-dollar-from-rupee-vostro-accounts-to-buy-india-arms-rupee-13769478.html" rel="nofollow noopener" target="_blank">confirmed</a>, “Indian exports are also being settled from the Russian funds in the Vostro account.” 
Cryptopolitan reporting by Jai Hamid

India and China Eliminate US Dollar in Imports

Съдържание

Cryptopolitan_News

Други статии, публикувани на 27.05.2024 г.

Nomura Holdings and GMO Group Embark on Stablecoin Venture in Japan

UNLEASH UNPARALLELED UTILITY BY HOLDING $PECKO

Blockdaemon Expands into UAE: Insights from COO Amor Sexton

South Korea’s Ministry of Justice forms task force to damper crypto crimes

Aptos Breaks Records: 115.4M Transactions in 1 Day

MoonBag Emerges as the Best Presale in 2024: Can Cardano and Solana Stay Relevant?

Присъединете се към нашия безплатен бюлетин за ежедневни крипто актуализации!