Following the US Federal Reserve’s sharpest tightening in monetary policy in decades, India has offered its currency as an alternative for...
Following the US Federal Reserve’s sharpest tightening in monetary policy in decades, India has offered its currency as an alternative for trade to nations that are experiencing a shortage of dollars, Bloomberg reported.
As a result of Joe Biden’s disastrous economic policies, there are now coordinated efforts to weaken the global reliance on the U.S. dollar
India’s new foreign trade policy took effect on April 1, according to Reuters.
The outlet reported:
The South Asian nation is prepared to trade in rupees with nations facing a shortage of dollars so as to “disaster-proof” them and effectively boost its exports, Commerce Secretary Sunil Barthwal told a news conference in the capital, New Delhi.
The measures include industry-specific targets to reach a goal of $2 trillion in exports of merchandise and services by 2030, said Santosh Kumar Sarangi, head of the directorate-general of foreign trade (DGFT).
That represents a nearly three-fold jump from expected exports of $770 billion in financial year 2022/23, he added, despite global uncertainties that make the export scenario slightly challenging.
India is also launching a new amnesty scheme for one-time settlement of defaults on export obligations, Sarangi said.
The scheme, which aims for faster resolution of trade disputes, will run until September 2023, but will not apply to cases involving fraud investigations.
India’s new policy will also automate some trade approvals and cut charges for medium-sized and small businesses to secure some government-backed benefits.
Bhagwat Karad, India’s minister of state for finance, said that the Reserve Bank of India had approved the opening of special rupee vostro accounts (SVRAs) of correspondent banks from 18 countries in 60 separate cases.
The countries include Botswana, Fiji, Germany, Guyana, Israel, Kenya, Malaysia, Mauritius, Myanmar, New Zealand, Oman, Russia, Seychelles, Singapore, Sri Lanka, Tanzania, Uganda, and the United Kingdom.
Also, according to a senior Russian official, the BRICS countries (Brazil, Russia, India, China, and South Africa) are in the process of developing their own currency that will be presented at the organization’s upcoming summit in South Africa.
Below is recap of countries stepping away from reliance on the US dollar in the last few weeks:
- Saudi Arabia enters trade alliance with China, Russia, India, Pakistan, and four Central Asian nations to step further away from reliance on the US dollar.
- China and France complete first LNG gas trade using Chinese Yuan, ending reliance on the US dollar for energy trades.
- China and Brazil to settle trades in their own currencies, ditching the US dollar.
- Brazil, Russia, India, China, and South Africa (BRICS) are developing a new currency, State Duma Deputy Chairman says.
- Saudi Arabia partners with China to build a Chinese oil refinery for 83.7 billion yuan ($12.2 billion).
- Kenya signs deal with Saudi Arabia and UAE to buy oil with Kenyan shillings instead of US dollars.
- President of Kenya tells citizens to get rid of US dollars.
- Association of Southeast Asian Nations considers dropping the US dollar, euro, yen, and British pound for local currency financial settlements.
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