HOT: India Rejects Full US Dollar Exit, Expands Rupee Trade.

[Luigi1]

Here's an article of GCR interests...

Strategic Positioning Within BRICS.  India Plays it Safe.

Treat as a rumor.  Not verified.  Your opine.

 

 

FROM ALTERNATE SOURCRS:   BRICS Shakeup: India Rejects Full US Dollar Exit, Expands Rupee Trade.

ARTICLE:  India’s Official Position: No Wholesale De-Dollarization.

India has formally rejected speculation of abandoning the USD, even as BRICS explores alternative settlement mechanisms.

 

MEA Spokesperson Randhir Jaiswal Clarified:

“We have made our position very clear on this issue earlier as well.  De-dollarization is not part of India’s financial agenda.”

 

His remarks followed Brazilian President Lula’s renewed call for a BRICS trade currency amid U.S. tariff tensions.

 

External Affairs Minister S. Jaishankar Reinforced India’s Balanced Stance:

“India is a member of the BRICS group & we continue to remain in touch with member countries to discuss issues of shared interest.”

 

Bilateral Rupee Trade Expansion:

Instead of a wholesale de-dollarization policy, New Delhi is pursuing targeted bilateral trade agreements to reduce Dollar dependency.

 

Key Developments Include:

Maldives: Direct rupee-rufiyaa settlement system established in November 2024.

UAE: Operational arrangements underway for rupee settlements.

 

Ongoing Talks:

With additional Asian & African nations to expand rupee settlement corridors.

 

RBI Deputy Gov Sanjay Malhotra confirmed that such agreements reduce both transaction costs & foreign exchange exposure for Indian businesses.

 

India’s approach diverges from China & Russia, who are pushing alternatives like the digital Yuan & Ruble under sanctions.

 

Instead, India Is:

Avoiding a common BRICS currency, citing economic & geographic disparities.

 

Maintaining global Dollar access while selectively reducing dependency through bilateral deals.

 

Retaining financial flexibility, ensuring that Rupee trade expansion complements rather than replaces the Dollar.

 

Pragmatic Currency Policy:

India’s strategy shows a practical middle path in BRICS:

 

No Abrupt USD Exit:

Focus on Rupee internationalization via bilateral agreements.

 

Balanced participation in BRICS without risking global market access.

 

This calculated stance places India as a unique player within BRICS—reducing Dollar reliance where possible but preserving financial stability & int'l credibility.

 

 

Here's Luigi's two cents worth...

Strategic Positioning Within BRICS.

India plays it safe, takes middle ground approach.

By not abandoning the USD, India doesn't face high duty on it's imports to the US.

This is a major blow to China & it's aspiration of making the Yuan the #1 global currency.

All efforts to destroy the US economy & the USD has been given extra time.

Will other BRICS nations follow India in order to get sweet tariff concessions from the US?

BRICS relies heavy on US imports, especially India, S.A. & Brazil.

China may have no choice but to cut a new trade deal with the US.

Trump has given China the end of August to come to the bargaining table.

China has been dragging it's feet & may now be motivated.

IMHO.